Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows: Set the objective as minimizing the value in cell E10 (Total Costs). Use the range B4:D4 as the changing variable cells. Adjust the hours provided by each company using the following constraints: E4-5500, the total hours of process consulting signed E10 is less than or equal to 1350000, the maximum third-party fees B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider B4:D4 should be an Integer Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box. a. b. C. d. e. f. 9.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
B
$Hours Provided
5
6 Fixed Costs
7
8 Variable Costs
9 Variable Cost Per Hour
10 Total Costs
11
12
13 Minimum Total Cost Model
14 $
15
16
17
18
A
Fixed Cost Per Hour
19
20
21
22
TRUE
TRUE
FALSE
1,334,200
3
32767
0
B
Process Pros
$
500
C
ABQ Consulting
$ 178,000.00 $
356.00
104,500.01
209.00
282,500 $
0
280,000.00 $
220.00
$
D
Tema Han
5,000
26,700.00
5.34
1,025,000.00
205.00
1,051,700 $
E
Total
5,500
1,334,200
Transcribed Image Text:B $Hours Provided 5 6 Fixed Costs 7 8 Variable Costs 9 Variable Cost Per Hour 10 Total Costs 11 12 13 Minimum Total Cost Model 14 $ 15 16 17 18 A Fixed Cost Per Hour 19 20 21 22 TRUE TRUE FALSE 1,334,200 3 32767 0 B Process Pros $ 500 C ABQ Consulting $ 178,000.00 $ 356.00 104,500.01 209.00 282,500 $ 0 280,000.00 $ 220.00 $ D Tema Han 5,000 26,700.00 5.34 1,025,000.00 205.00 1,051,700 $ E Total 5,500 1,334,200
Cairo Consulting wants to determine whether reselling process consulting services
provided by third parties would reduce the costs of this type of consulting. Switch to the
Process Providers worksheet, and then run Solver to solve this problem as follows:
a. Set the objective as minimizing the value in cell E10 (Total Costs).
b.
Use the range B4:D4 as the changing variable cells.
Adjust the hours provided by each company using the following constraints:
E4=5500, the total hours of process consulting signed
E10 is less than or equal to 1350000, the maximum third-party fees
B4:D4 is less than or equal to 5000, the maximum hours provided by a single
third-party provider
B4:D4 should be an Integer
Run Solver, keep the solution, and then return to the Solver Parameters dialog
box. Save the model to the range A14:A21, and then close the Solver Parameters
dialog box.
C.
d.
e.
f.
9.
Transcribed Image Text:Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows: a. Set the objective as minimizing the value in cell E10 (Total Costs). b. Use the range B4:D4 as the changing variable cells. Adjust the hours provided by each company using the following constraints: E4=5500, the total hours of process consulting signed E10 is less than or equal to 1350000, the maximum third-party fees B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider B4:D4 should be an Integer Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box. C. d. e. f. 9.
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