1.Build in Excel the chart below (see attached file for starting formulas).

2. Determine the rate of change in a new column and then use that calculation to determine the expected 2015 values.

3. The owners want to see the Gross Margin return to 20% so you will need to adjust to that standard. Choose whether to increase price, decrease labor, or look for discounted materials. Choose wisely.

4. Write a short paragraph stating and supporting your decision on how to increase the gross margin as a direct response to the discussion question.

5. Attach your excel spreadsheet with the forecast for 2015 filled in.

ABC Manufacturing

ABC Manufacturing 2013 2014 2015 UNITS 5,075 5.080 REVENUE 50,750 50,800 LABOR 25,375 26,000 MATERIALS 15,225 15,240 GROSS MARGIN 10,150 9,560 GROSS MARGIN % 20% 19% #DIV/0! ABC Manufacturing 2013 2015 UNITS REVENUE 5,075 50,750 2014 5,080 50,800 LABOR MATERIALS 25,375 15,225 26,000 15,240 GROSS MARGIN GROSS MARGIN % 10,150 20% 9,560 19%