You are the business manager for Indy Deck Builders, a local construction company that specializes in new deck installation. Your company offers three deck models. Model A which costs $2,000, model B costs $3,500, and model C costs $5,000. You currently have 45 contracts to build model A, 55 for model B, and 75 for model C. Once the contracts have been completed, you will have a surplus of materials (wood, hard-ware, and paint) remaining in inventory. After expenses your company’s net profit is $492,031.25. You would like to use Solver to forecast how many additional contracts you can accept to maximize profit while not exceeding the raw materials in inventory.
Start Excel. Download and open the file named EXP19_Excel_Ch06_ML2_HW_DeckBuilders.xlsx. Grader has automatically added your last name to the beginning of the filename.
Calculate total building expensive for model A in cell C16. Total expense is calculated by multiplying manufacturing cost (C4) and total contracts (C8). Then use the fill handle to copy the formula into cells D16 and E16.
Calculate total profit for model A in cell C17. Total profit is calculated by multiplying profit marging (C6) and total contracts (C8). Then use the fill handle to copy the formula into cells D17 and E17.
Create range names based on the values in the range C19:C20 based on the values in the range B19:B20.
In cell C19 use the SUM function to calculate total building expenses. The total building expenses are the sum of the range C16:E16.
In cell C20 use the SUM function to calculate total profits. The total profit is the sum of the range C17:E17.
If not loaded, load the Solver add-in. Set the objective cell to Max Net Profit (cell C21).
Assign Total Contracts (range C8:E8) as the Changing Variables Cells.
Set a constraint to ensure contracts are whole numbers.
Set a constraint to ensure the raw material used do not exceed inventory.
Set a constraint to ensure that the Total Contracts are greater or equal to the existing contracts.
Create an Answer Report to outline your findings.
Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side of both worksheets.
Save and close Exp19_Excel_Ch06_ML2_HW_DeckBuilders.xlsx. Exit Excel. Submit the file as directed.