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Project Description: You are the production manager for Delta Paint, a regional manufacturing company that specializes in customized paints. Your company sells paint by the
Project Description:
You are the production manager for Delta Paint, a regional manufacturing company that specializes in customized paints. Your company sells paint by the gallon, and you have the task of forecasting the best production blends to maximize profit and most effectively utilize resources.
Steps to Perform:
Step Instructions Points Possible
Download and open the file named ExpExcelChCapDeltaPaint.xlsx Grader has automatically added your last name to the beginning of the filename.
Create appropriate range names for Total Production Cost cell B and Gross Profit cell B by selection, using the values in the left column.
Edit the existing name range EmployeeHourlyWage to HourlyWages
Note, Mac users, in the Define Name dialog box, add the new named range, and delete the original one.
Use the newly created range names to create a formula to calculate Net Profit in cell B Net Profit Gross Profit Total Production Cost.
Create a new worksheet labeled Range Names, paste the newly created range name information in cell A and resize the columns as needed for proper display.
On the Forecast sheet, start in cell E Complete the series of substitution values ranging from to at increments of gallons vertically down column E
Enter references to the TotalProductionCost, GrossProfit, and Net Profit cells in the correct locations F G and H respectively for a onevariable data table. Use range names where indicated.
Complete the onevariable data table in the range E:H using cell B as the column input cell, and then format the results with Accounting Number Format with two decimal places.
Apply custom number formats to make the formula references appear as descriptive column headings. In F Total Costs; in G Gross Profit, in H Net Profit. Bold and center the headings and substitution values.
Copy the number of gallons produced substitution values from the onevariable data table, and then paste the values starting in cell E
Type $ in cell F Complete the series of substitution values from $ to $ at $ increments.
Enter the reference to the net profit formula in the correct location for a twovariable data table.
Complete the twovariable data table in the range E:K Use cell B as the Row input cell and B as the Column input cell. Format the results with Accounting Number Format with two decimal places.
Apply a custom number format to make the formula reference appear as a descriptive column heading Wages. Bold and center the headings and substitution values where necessary.
Create a scenario named Best Case, using Units Sold, Unit Selling Price, and Employee Hourly Wage use cell references Enter these values for the scenario: and
Create a second scenario named Worst Case, using the same changing cells. Enter these values for the scenario: and
Create a third scenario named Most Likely, using the same changing cells. Enter these values for the scenario: and
Generate a scenario summary report using the cell references for Total Production Cost and Net Profit.
Load the Solver addin if it is not already loaded. Set the objective to calculate the highest Net Profit possible.
Use the units sold as changing variable cells.
Use the Limitations section of the spreadsheet model to set a constraint for raw materials The raw materials consumed must be less than or equal to the raw materials available Use cell references to set constraints.
Set a constraint for labor hours. Use cell references to set constraints.
Set a constraint for maximum production capability. Units sold B must be less than or equal to maximum capability per week B Use cell references to set constraints.
Solve the problem. Generate the Answer Report and Keep Solver Solution.
Create a footer on all four worksheets with your name on the left side, the sheet name code in the center, and the file name code on the right side.
Save and close ExpExcelChCapDeltaPaint.xlsx Exit Excel. Submit the file as directed.
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