Step Instructions 1 Start Excel. Download and open the file named e06c1DirectMarketing.xlsx. Save it as e06c1DirectMarketing_LastFirst.xlsx. Note: You must save the file name correctly. Otherwise, your assignment will be deducted by 5 pts.

2 On the Direct Marketing worksheet, create appropriate range names for Design_Fee (cell B8), Cost_Per_Ad (cell B9), Total_Clicks (cell B10), Profit_Per_Click (B11), and Gross_Profit (cell B12)

. 3 Edit the existing name range Design_Fee to Design_Fee2021 to reflect the current year.

4 Use the newly created range names to create a formula to calculate Gross Profit (cell B12) and Net Profit (cell B13). Hints: Gross profit is the product of total clicks and profit per click. Net profit is Gross profit - ad design fee - total clicks * cost per ad design.

5 Create a new worksheet named Range Names, paste the newly created range name information (created in step 2-3) in cell A1, and resize the columns as needed for proper display. Mac users, use the Insert menu to insert a new worksheet and paste the range names.

6 Goal Seek Analysis: On the Direct Marketing worksheet, use Goal Seek to determine the optimal click rate in order to earn a $5,000 net profit. Then, give your answer for this question, If 10,000 ads are purchased, what is the optimal click response rate to earn a $5,000 net profit? in the Q&A worksheet

7 One-Variable Data Table Analysis: Your initial forecast includes 10000 ads with a 5% response rate (i.e. before step 6). You want to evaluate the change in gross profit and net profit as the click response rate changes. You will create a one-variable data table using substitution values from 2% to 6.5% to complete the task. Starting in cell E4. Complete the series of substitution values ranging from 2% to 6.5% at increments of .50% vertically down column E.

8 Enter references to the Gross Profit and Net Profit in the correct location for a one-variable data table.

9 Complete the one-variable data table, and then format the results with Accounting Number Format with two decimal places.

10 Apply custom number formats to display Gross Profit in cell F3 and Net Profit in cell G3. Then, answer this question What click response rate is required for a gross profit of over $7,000? in the Q&A worksheet. Save your workbook.

11 Two-Variable Data Table Analysis: You are considering increasing the number of ads purchased to raise net profit. You are also interested in how net profit will change if the response rate changes as well as the total number of ads purchased. You will create a two-variable data table to complete the task. Copy the response rate substitution values from the one-variable data table, and then paste the values starting in cell I4.

12 Type 10000 in cell J3. Complete the series of substitution values from 10000 to 40000 at 5000 increments.

13 Enter the reference to net profit formula in the correct location for a two-variable data table.

14 Complete the two-variable data table and format the results with Accounting Number Format with two decimal places.

15 Apply a custom number format to make the formula reference appear as Net Profit. Now, answer these questions on Q&A worksheet, For the two-variable data table, if 20,000 ads are purchased, what is the required response rate to net $5000? and For the two-variable data table, if the ads purchased is raised to 40,000, what is the required response rate to net $10000?. Save your workbook.

16 Scenario Manager Analysis: Up to this point, you have created forecasts based on static amounts; however, it is important to plan for both positive and negative outcomes. To help you analyze best, worst, and most likely outcomes, you will use Scenario Manager. Make the Direct Marketing worksheet active. Create a scenario named Best Case, using Number of Ads and Click Rate. Enter these values for the scenario: 40000, and 6.5%.

17 Create a second scenario named Worst Case, using the same changing cells. Enter these values for the scenario: 10000, and 1%.

18 Create a third scenario named Most Likely, using the same changing cells. Enter these values for the scenario: 10000, and 6.83%.

19 Generate a scenario summary report using Gross Profit and Net Profit. Now, answer the questions, What is the Net Profit based on the best case scenario?.