Case 8-3 Template INSTRUCTIONS: Read the case in the textbook. As a team, answer the questions in this spreadsheet, then save and submit the assignment as one Microsoft Excel attachment. Also, submit a 1-paragraph Microsoft Word document explaining any issues or successes you had in answering these questions. Refer to and use the following abbreviations for the problems below: PP = Parma minimum supply purchase S1 = Supplier 1 S2 = Supplier 2 CDF = Chain Discount Factor NP = Net Price NDE = Net Decimal Equivalent TD = Trade Discount 1. The Artist's Palette purchases its inventory from a number of suppliers and each supplier offers different purchasing discounts. The manager of The Artist's Palette, Marty Parma, is currently comparing two offers for purchasing modeling clay and supplies. The first company offers a chain discount of 20/10/5, and the second company offers a chain discount of 18/12/7 as long as the total purchases are $300 or more. Assuming Parma purchases $300 worth of supplies, a) what is the net price from supplier 1? And b) From supplier 2? And c) From which supplier would you recommend Parma purchase her modeling clay and supplies? (Use this cell to answer parts a, b, and c. Be sure to show your work.) Now use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used S1 S2 PP= 1st CDF 2nd CDF 3rd CDF Excel Formula NP= In the yellow cells, create the Microsoft Excel formulas that will give you the net prices for the two suppliers. Use cell references in the formulado NOT use numbers. 2. What is the net decimal equivalent for supplier 1? For supplier 2? (Show your work in this cell to solve for the net decimal equivalent for the two suppliers.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used S1 S2 1st CDF 2nd CDF 3rd CDF Excel Formula NDE= In the yellow cells, create the Microsoft Excel formulas that will give you the net decimal equivalent for the two suppliers. Use cell references in the formula do NOT use numbers. 3. What is the trade discount from supplier 1? From supplier 2? (Show your work in this cell to solve for the trade discount for the two suppliers.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used S1 S2 PP= NDE Excel Formula TD= In the yellow cells, create the Microsoft Excel formulas that will give you the trade discount for the two suppliers. Use cell references in the formulado NOT use numbers. 4. The Artist's Palette recognizes that students may purchase supplies at the beginning of the term to cover all of their art class needs. Because this could represent a fairly substantial outlay, the Artist's Palette offers discounts to those students who pay sooner than required. Assume that if students buy a minimum of $250 of art supplies in one visit, they may put it on a student account with terms of 2/10, n/30. If a student purchases $250 of supplies on September 16, what amount is due by September 26? How much would the student save by paying early? (Show your work in this cell to solve for the amount due by September 26 and the amount saved by paying early.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used Original Cost= Discount= Excel Formula Due by 9/26= Amount saved In the yellow cells, create the Microsoft Excel formulas that will give you the amount due by September 26 and the amount saved by paying early. Use cell references in the formulado NOT use numbers. 5. Assume that if students buy a minimum of $250 of art supplies in one visit, they may put the charge on a student account with terms of 2/10 EOM. If a student makes the purchase on September 16, on what day does the 2% discount expire? If the purchase is made on September 26, on what day does the 2% discount expire? If you were an art student, which method would you prefer: 2/10, n/30, or 2/10 EOM? (Use this cell to respond to the questions.) Case 9-1 Template INSTRUCTIONS: Read the case in the textbook. As a team, answer the questions in this spreadsheet, then save and submit the assignment as one Microsoft Excel attachment. Also, submit a 1-paragraph Microsoft Word document explaining any issues or successes you had in answering these questions. Refer to and use the following abbreviations for the problems below: BT = Box of tea S&H = Shipping and handling P = Desired profit per box of tea RFP = Rice-filled pad 1. What is the markup percentage for a box of ginger tea? (Show your work in this cell to solve for the markup percentage for a box of ginger tea.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used Cost per BT= S&H= P= Excel Formulas Ginger Tea % Markup In the yellow cells, create the Microsoft Excel formula that will give you the ginger tea markup percentage. Use cell references in the formulado NOT use numbers. 2. If the rice-filled heating pads sell for $7.00, $10.00, and $15.00 for small, medium, and large, respectively, what is the markup percentage on each one? (Show your work in this cell to solve for the markup percentages for small, medium, and large rice-filled heating pads.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used Small RFP Selling Price= Medium RFP Selling Price= Large RFP Selling Price= Small RFP Cost= Medium RFP Cost= Large RFP Cost= Excel Formulas Small % Markup= Medium % Markup= Large % Markup= In the yellow cells, create the Microsoft Excel formulas that will give you the markup percentages for small, medium, and large rice-filled heating pads. Use cell references in the formulado NOT use numbers. 3. Karen wants to compare using the cost plus method to the percentage markup method. If she sells 2 small rice pads, 4 medium rice pads, 2 large rice pads, and 20 boxes of $3.50 tea in a month, how much profit does she accumulate? What markup percentage based on cost would she have to use to make the same amount of profit on this month's sales? (Show your work in this cell to solve for the profit she accumulates and the markup percentage based on cost she would have to use to make the same amount of profit.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Amount Sold Variables Used Small RFP Selling Price= Medium RFP Selling Price= Large RFP Selling Price= BT Selling Price Small RFP Cost= Medium RFP Cost= Large RFP Cost= BT Cost Excel Formulas Total Profit Total Cost Markup % based on cost= In the yellow cells, create the Microsoft Excel formulas that will give you the total profit, total cost, and required markup percentage based on cost. Use cell references in the formulado NOT use numbers. 4. What prices should Karen charge (using the markup percentage) to obtain the same amount of profit as she did with the cost plus method? Do not include shipping. (Show your work in this cell to solve for the profit she accumulates and the markup percentage based on cost she would have to use to make the same amount of profit.) Use the marked cells below to fill in the appropriate numbers for the variables to check your answers. Variables Used Small RFP Cost= Medium RFP Cost= Large RFP Cost= BT Cost Markup % based on cost= Excel Formulas Small RFP Selling Price= Medium RFP Selling Price= Large RFP Selling Price= BT Selling Price In the yellow cells, create the Microsoft Excel formulas that will give you the selling prices based on markup percentage. Use cell references in the formulado NOT use numbers