1. Which is the alternative with the lowest cost In the Microsoft Excel work she
ID: 1160100 • Letter: 1
Question
1. Which is the alternative with the lowest cost In the Microsoft Excel work sheet? To answer this question you should look to cell F21 and cell G 21. Remember they numbers represents costs.
a. Site A
b. Site B
c. Both are the same
2. If the monthly rent in Site A changes (cell D9) from a $1,000 per month to $3,000 per month, which is the best alternative?
a. Site A
b. Site B
c. Both are the same
3. If the monthly rent in Site B changes (cell E9) from a $5,000 per month to $4,000 per month, which is the best alternative?
a. Site A
b. Site B
c. Both are the same
4. If the average hauling distance in Site B changes (cell E8) from 4.3 miles to 6 miles, which is the best alternative?
a. Site A
b. Site B
c. Both are the same
5. If the cost of setup and remove equipment from Site B changes (cell G17) from $25,000 to $35,000, which is the best alternative?
a. Site A
b. Site B
c. Both are the same
job requires (cubic yard) montly rental 1000 Site A Site B job duration (months) job duration (weeks) COST FACTOR Average hauling distance Montly rental of site Cost to set up and remove equipment Hauling expense Flagperson 4 4 17 4.3 1000 10 15000 25000 1.15 1.15 96 per day/5 days per week 13 14 15 16 17 18 19 20 21 Fixed Variable Cost Rent Setup/removal Flagperson Haulin Site A Site B -D5 D9 E5*E9 -5*E6 96 E8 D1*E11 -D8 D1 D11 Total -SUM(F16:F19)SUM(G16:G19) 23 24 25 26 27 35000 8160 247250 364000 310410 30Explanation / Answer
ans1.
SITE A : rent = D5 * D9 =4 *1000 = 4000
hauling = D8 * D1 * D11 = 6 * 50000 * 1.15= 345000
total cost = SUM (F16:F19) = 4000 + 15000 + 0 + 345000 = 364000
SITE B : rent = E5 * E9 = 4 * 5000 = 20000
flagperson = 5 * E6 *96 = 5 * 17 * 96 = 8160
hauling = E8 *D1 * E11 = 4.3 * 50000 * 1.15 = 247250
Total cost = sum(G16:G19) = 20000 + 25000+ 8160 + 247250 = 300410
HENCE, SITE B has lower cost.
ans 2.
if cell D9 becomes 3000
then ,
SITE A : rent = D5 * D9 =4 *3000 = 12000
hauling = D8 * D1 * D11 = 6 * 50000 * 1.15= 345000
total cost = SUM (F16:F19) = 12000 + 15000 + 0 + 345000 = 372000
SITE B : rent = E5 * E9 = 4 * 5000 = 20000
flagperson = 5 * E6 *96 = 5 * 17 * 96 = 8160
hauling = E8 *D1 * E11 = 4.3 * 50000 * 1.15 = 247250
Total cost = sum(G16:G19) = 20000 + 25000+ 8160 + 247250 = 300410
HENCE, again SITE B has lower cost .
ans 3.
if cell E9 changes from 5000 to 4000 . then,
SITE A : rent = D5 * D9 =4 *1000 = 4000
hauling = D8 * D1 * D11 = 6 * 50000 * 1.15= 345000
total cost = SUM (F16:F19) = 4000 + 15000 + 0 + 345000 = 364000
SITE B : rent = E5 * E9 = 4 * 4000 = 16000
flagperson = 5 * E6 *96 = 5 * 17 * 96 = 8160
hauling = E8 *D1 * E11 = 4.3 * 50000 * 1.15 = 247250
Total cost = sum(G16:G19) = 16000 + 25000+ 8160 + 247250 = 296410
again, SITE B has lower cost.
ans 4.
if cell E8 changes from 4.3 to 6 . then,
SITE A : rent = D5 * D9 =4 *1000 = 4000
hauling = D8 * D1 * D11 = 6 * 50000 * 1.15= 345000
total cost = SUM (F16:F19) = 4000 + 15000 + 0 + 345000 = 364000
SITE B : rent = E5 * E9 = 4 * 5000 = 20000
flagperson = 5 * E6 *96 = 5 * 17 * 96 = 8160
hauling = E8 *D1 * E11 = 6 * 50000 * 1.15 = 345000
Total cost = sum(G16:G19) = 20000 + 25000+ 8160 + 345000 = 398160
now, SITE A has lower cost .
ans 5.
if cell G17 changes from 25000 to 35000, then,
SITE A : rent = D5 * D9 =4 *1000 = 4000
hauling = D8 * D1 * D11 = 6 * 50000 * 1.15= 345000
total cost = SUM (F16:F19) = 4000 + 15000 + 0 + 345000 = 364000
SITE B : rent = E5 * E9 = 4 * 5000 = 20000
flagperson = 5 * E6 *96 = 5 * 17 * 96 = 8160
hauling = E8 *D1 * E11 = 4.3 * 50000 * 1.15 = 247250
Total cost = sum(G16:G19) = 20000 + 35000+ 8160 + 247250 = 310410
SITE B again has lower cost.
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