Case Study Analyzing Regional Sales Information for CKG Auto

As a regional sales manager for CKG Auto, you have just finished summarizing sales data for the first half of this year (January through June) aggregated by car model. You have started to enter data in an Excel worksheet, which lists by model the following:

Sales Volume indicating the number of cars sold to dealers. Manufacturing (Mfg.) Cost per Vehicle,

Total Cost of all vehicles sold for the model. You will need to calculate this based on the sales volume and the manufacturing costs per vehicle.

Markup Percentage, which is the percentage charged above manufacturing cost to dealers.

Total Sales to dealers. You will need to calculate this as Total Cost plus Markup. (Markup is the markup percentage times the manufacturer cost of the vehicle.)

% of Total Volume. You will need to calculate this based on volume for the model as compared with the volume of all models sold for the time period.

First, you need to complete the January through June computations based on the data contained in the worksheet and the information given. Then, you have been asked to create a similar worksheet to estimate sales for July through December based on volume supplied by the marketing group. These volumes are based on the historical values adjusted for seasonal demand of specific car types and from market research data on car popularity.

After you have completed both the first half actual sales and second half estimated sales, you need to combine this data to determine expected yearly sales. Management is not only interested in the absolute value of those sales, but each model's contribution to the total yearly sales in each half of the year and in aggregate.

When you complete the workbook, verify that all data is correctly referenced so that your formulas will work as you copy them down the column or across the row, as necessary.

Your first task is to complete the Sales Summary for January through June by writing the necessary formulas in the cells that are highlighted in the Excel worksheet.

Complete the following:

1. Open the workbook named Sales.xlsx located in the Lab 1 folder, and then save it as Auto Sales.xlsx. Rename the Sheet1 worksheet tab as 1st Half.

2. In the highlighted cells, enter formulas to perform the necessary calculations. Be sure to write all formulas so that they can be copied as necessary. Note the following:

Display all dollar values in whole dollars and include the dollar sign in the first row and total rows only.

When calculating averages, do not include any models that had no sales. Display all average values (other than the percentage) with commas and no decimal places. The formulas in column G need to determine the percent of total volume sales that the vehicle represents. (That is, if model A sold 100 cars and a total of 1000 cars were sold for all models, then model A would represent 10% of the total volume.) Format the cells in column G to display values to the nearest tenth of a percent.

3.Your next task is to create an estimate of the July through December sales based on marketing data and the first half-year sales values. The marketing group has provided a list of all car models in identical order to the original data you received, with the expected sales volumes for each car model. This list is found in the workbook named Market.xlsx, which is located in the Lab 1 folder. Manufacturing costs and markups are assumed to be the same for the second half of the year as they were for the first half. With the data and assumptions in mind, create a new worksheet named 2nd Half in the Auto Sales.xlsx workbook, identical to the 1st Half worksheet. Copy and paste the sales volumes from the Market.xlsx workbook into your new worksheet. Verify that all the calculations in the new worksheet reflect the new data.

4. Create another new worksheet named Summary, and include the column headings shown in Table 10 on this new worksheet.

Table 10: Column headings for Summary worksheet

Model

Annual Volume

Jan-June Sales to Dealers

July-Dec Sales to Dealers

Total Sales to Dealers

%Total Sales to Dealers Jan-June

%Total Sales to Dealers July-Dec

%Total Sales to Dealers Annual

5. Insert the model numbers in the identical format as shown on the 1st Half and 2nd Half worksheets.

6. Insert the annual volume for each modelthe combined totals of the January through June and the July through December volumes. Make sure that the values will automatically update if any of the input values are changed at a later time.

7. Insert the Jan-June sales to dealers, again ensuring that these values will automatically update if any of the input data changes.

8. Insert the July-Dec sales to dealers, again ensuring that these values will automatically update if any of the input data changes.

9. Create a combined total of sales to dealers for the entire year.

10. Calculate the total volumes and the total sales to dealers for each time period and annually in a row below the data.

11.Calculate the percentage of sales to dealers that each model represents, as a percentage of the total sales to dealers for all modelsfirst for the Jan-June time frame, then the July-December time frame, and finally for the annual values. Use only one formula for this calculation and make sure that the formula can be copied down the column to calculate the percentages for the corresponding models, and across the row to calculate the percentages for the corresponding time frames. Display the percentage values with an appropriate format and number of decimal places.

12. Format all three worksheets so that they have a professional appearance.

13. Save and close the Auto Sales.xlsx workbook.