The overarching goal is to calculate and analyze Prestige Auto’s revised departmental budgets in terms of their projected dollars of value- add vs. percentage value-add. The learning objectives are to utilize customer-based value analysis to analyze Prestige Auto’s potential 20x7 performance, evaluate the viability of the projected performance, and use basic Excel commands to complete the analysis.

The worksheets you need to review and use to complete this exercise are: Income Statement 12-31-x6, Balance Sheet 12-31-x6, Revised Dept Budgets 20x7, Marketing Value Analysis, Customer Service Value Analysis, Repairs Value Analysis, Management Value Analysis, and Acquisition Value Analysis. The templates to complete are DB 13.1 Part a) Template and DB 13.1 Part b) Template.

Do the following:

Enter the results from the value analysis data worksheets.

Calculate the percentage cost for each value category.

Calculate the percentage of the value-added cost for each value attribute.

REQUIRED:

a. Turn in your completed worksheets along with answers to the two following questions.

b. Look at your percentage totals. What department provides the most value-add to customers? The least value-add to customers?

c. Again, looking at your percentages, which attribute is most served by the company (has the highest percentage of cost)? Does this make sense for a car dealership? Why or why not?