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F G H . K L M N 0 P O S T U w Student Work Area Required: Provide input into cells shaded in

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F G H . K L M N 0 P O S T U w Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work area as indicated. A B E Formula: Divide, Multiply, Subtract; Cell Referencing 2 3 E8.13 - Using Excel to Allocate Constrained Resources 1 PROBLEM 5 Umbrella Co. is considering the introduction of three new products. Per unit 6 sales and cost information are as follows: 7 8 A B 9 Sales price $ 3.00 $ 5.00 $ 16.00 10 Variable costs $ 1.20 $ 3.40 $ 10.00 11 Fixed costs $ 0.50 $ 1.00 $ 3.50 12 Labor hours per unit 0.75 1.25 2.00 13 Monthly demand in units 800 650 250 A B C Contribution margin per unit Contribution margin per labor hour 14 Preference ranking Allocation Ranking Product Units to Produce Hours Used Hours Available 1,500 #1 #2 15 The company has only limited direct labor hours available to commit to 16 production of any new products. 17 18 Labor hours available 1,500 19 20 How many of each product should Umbrella Co. produce and sell to 21 maximize its profit? 22 23 24 25 26 27 28 29 #3 F G H . K L M N 0 P O S T U w Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work area as indicated. A B E Formula: Divide, Multiply, Subtract; Cell Referencing 2 3 E8.13 - Using Excel to Allocate Constrained Resources 1 PROBLEM 5 Umbrella Co. is considering the introduction of three new products. Per unit 6 sales and cost information are as follows: 7 8 A B 9 Sales price $ 3.00 $ 5.00 $ 16.00 10 Variable costs $ 1.20 $ 3.40 $ 10.00 11 Fixed costs $ 0.50 $ 1.00 $ 3.50 12 Labor hours per unit 0.75 1.25 2.00 13 Monthly demand in units 800 650 250 A B C Contribution margin per unit Contribution margin per labor hour 14 Preference ranking Allocation Ranking Product Units to Produce Hours Used Hours Available 1,500 #1 #2 15 The company has only limited direct labor hours available to commit to 16 production of any new products. 17 18 Labor hours available 1,500 19 20 How many of each product should Umbrella Co. produce and sell to 21 maximize its profit? 22 23 24 25 26 27 28 29 #3

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