Question
You are the Chief Financial Officer for Rays Heating and Air. You have been given the task of increasing gross income from $91,000 to $120,000
You are the Chief Financial Officer for Rays Heating and Air. You have been given the task of increasing gross income from $91,000 to $120,000 per year. Rays income is earned through service calls. Customers are charged trip and hourly charges as pictured in the table below. Your goal is to create a spreadsheet to allow you to evaluate the most economically feasible option for increasing gross income while adhering to the following constraints. The maximum amount of hours billed without hiring additional technicians is 2,500. The trip charge may not exceed $50.00, and the service hourly rate/trip charge must all be whole numbers. The calls/hourly rate/trip charge must all be whole numbers. Current Service Calls Hourly rate Trip Charge Hours Billed 640 $30.00 $25.00 2500 Open e06m2RaysAC and save it as e06m2RaysAC_LastFirst. Use the formula service calls * trip charge + hours billed * hourly rate to determine gross income. If not loaded, load the Solver add-in. Set the objective cell to $120,000. Set constraints to ensure service calls, hourly rate, and trip charge are integers. Set a constraint to ensure hours billed cannot exceed 2,500. Set a constraint to ensure the trip charge does not exceed $50.00. Set a constraint to ensure hourly rate does not drop below $30.00 Create an Answer Report to outline your findings. After solving, answer the questions in the Q&A section.
Question 1) How many service calls are required to reach the goal of $120,000 and do you feel it is feasible? 2) What is proposed new trip charge and do you feel customers will except the increase/decrease? 3) What is proposed new hourly rate? Do you feel customers will except the increase/decrease? 4) Do you feel the overall changes are economically possibleStep by Step Solution
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