You are the chief financial officer for Viking Heating and Air. You were given the task of increasing gross income from $91,000 to $120,000 per year. VikingĂ˘â‚¬â„˘s 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 enable 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.
Open e06m2VikingAC and save it as e06m2VikingAC_LastFirst.
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Create range names based on the values in the range A2:B5.
Use the formula Service_calls * Trip_charge + Hourly_rate* Hours_billed to determine gross income.
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.
|How many service calls are required to reach the goal of $120,000 and do you feel it is feasible?|
|What is proposed new trip charge and do you feel customers will except the increase/decrease?|
|What is proposed new hourly rate? Do you feel customers will except the increase/decrease?|
|Do you feel the overall changes are economically possible?|
Create a footer 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 the file. Based on your instructorĂ˘â‚¬â„˘s directions, submit e06m2VikingAC_LastFirst.