BE5.7
-
Using
Excel
to
Determine
Profitability
Given
a
Constrained
Reso
PROBLEM
Rachel
wants
to
use
her
knitting
skills
to
make
a
little
extra
money
so
she
can
enjoy
a
theatre
weekend
with
her
besties.
She’s
got
the
pattern
down
for
a
hat,
scarf,
and
mittens,
but
she
realizes
that
her
available
time
is
limited.
She
should
be
able
to
sell
as
many
of
any
item
as
she can
make,
but
she
wants
to
make
sure
she’s
making
the
best use
of
her
time.
Cost
and
time
information
are
provided
here.
Hat
Scarf
Mittens
Time
in
minutes
20
30
40
Cost
of
yarn
per
unit
$
400
S
6.00
S
4.00
Selling
price per
unit
15.00
15.00
15.00
Student
Work
Area
Required:
Provide
input
into
cells
shaded
in
yellow
in
this
template.
Input
the
required
mathematical
formulas
or
functions
with
cell
references
to
the
Problem
area
or
work
area
as
indicated.
Calculate
the
contribution
margin
per
unit
of
the
scarce
resource
for
each
item.
Hat
Scarf
Mittens
Contribution
margin
per
unit
of
scarce
resourcel
S
0.55‘_|
S
030"
S
0.28"
Which
item
should Rachel
focus
on
in
order
to
maximize
her
profitability
and
resources?
The
highest
CM
is
$
055
