William MIS 3003 Homework 3.docx - William Besong MIS 3003 Chapter 3 Homework 3-1 Figure AE-1 shows an Excel spreadsheet that the resort bicycle rental

William MIS 3003 Homework 3.docx - William Besong MIS 3003...

This preview shows page 1 - 3 out of 3 pages.

William Besong MIS 3003 Chapter 3 Homework 3-1. Figure AE-1 shows an Excel spreadsheet that the resort bicycle rental business uses to value and analyze its bicycle inventory. Examine this figure to understand the meaning of the data. Now use Excel to create a similar spreadsheet. (4 pts) a. Figure AE-1 uses the following formulas: Cost of Current Inventory = Bike Cost * Number on Hand. Revenue per Bike = Total Rental Revenue / Number on Hand. Revenue as a Percent of Cost of Inventory = Total Rental Revenue / Cost of Current Inventory. Use these formulas in our spreadsheet, as shown in Figure AE-1. Input raw data as the Figure AE-1. Make of Bike Bike Cost Number on Hand Number of Rentals Total Rental Revenue Wonder Bike $325 12 85 $6,375 Wonder Bike II $385 4 34 $4,570 Wonder Bike Supreme $475 8 44 $5,200 LiteLift Pro $655 8 25 $2,480 LiteLift Ladies $655 4 40 $6,710 LiteLift Racer $795 3 37 $5,900 b. Give three examples of decisions that management of the bike rental agency might make from his data. i) The management may increase the number of Wonder Bike II bicycles since its revenue is very high which will reduce the percentage of cost of inventory.
Image of page 1

Subscribe to view the full document.

ii) The management can also replace LiteLift Pro bicycles with Wonder Bike
Image of page 2
Image of page 3
  • Summer '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes