With Excel: Aginar is helping a client look at a possible renovation. The renova

Question

With Excel:

Aginar is helping a client look at a possible renovation. The renovation is in an office tower, and will have room for 100 standard offices that are used by traveling executives. Some of that space could be used for luxury offices which would be twice the size of a standard office. For example, you could plan for 20 luxury offices, which would mean you would have space left for 60 standard offices (100 – 2 * 20). This will not affect overall construction costs.

We also know:

• We rent the standard offices for $99/day and the luxury ones at $169/day.

• Our demand for standard office is a random integer between 35 and 65; the remainder will be luxury offices. Note if there is not enough space for a luxury office in the remaining space, it will be added as a standard office.

• It costs $13 per day to clean a standard office and $32 to clean a luxury office.

• Fixed costs are $1500 per day

Develop a simulation for 500 days, and use the simulation to create a graph of # of standard offices (x axis) versus profit (y axis). Make sure it includes a chart title and axis labels.

Explanation / Answer

Simulation for 5 days is shown for excel.

First row is the header row

Simulate the number of standard offices using formula randbetween(35,65) for 500 rows.

Number of luxury offices is (100 - no. of std ofces)/2, to avoid the decimal we are rounding to the lowest number using floor formula.

Cost of cleaning is multipying by the number of offices by corresponding cost and the same goes for rent.

total cost is adding 1500$ to the above cost.

profit = rent - cost

5 days simulated values are shown below

Day std ofc lux ofc total ofc std ofc clean cost lux ofc clean cost std ofc rent lux ofc rent Total cost total rent profit 1 =+RANDBETWEEN(35,65) =+FLOOR((100-B2)/2,1) =+B2+C2*2 =13*B2 =32*C2 =99*B2 =169*C2 =1500+E2+F2 =+G2+H2 =+J2-I2 2 =+RANDBETWEEN(35,65) =+FLOOR((100-B3)/2,1) =+B3+C3*2 =13*B3 =32*C3 =99*B3 =169*C3 =1500+E3+F3 =+G3+H3 =+J3-I3 3 =+RANDBETWEEN(35,65) =+FLOOR((100-B4)/2,1) =+B4+C4*2 =13*B4 =32*C4 =99*B4 =169*C4 =1500+E4+F4 =+G4+H4 =+J4-I4 4 =+RANDBETWEEN(35,65) =+FLOOR((100-B5)/2,1) =+B5+C5*2 =13*B5 =32*C5 =99*B5 =169*C5 =1500+E5+F5 =+G5+H5 =+J5-I5 5 =+RANDBETWEEN(35,65) =+FLOOR((100-B6)/2,1) =+B6+C6*2 =13*B6 =32*C6 =99*B6 =169*C6 =1500+E6+F6 =+G6+H6 =+J6-I6

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