BE5.7 - Using Excel to Determine Profitability Given a Constrained Resource Student Work Area PROBLEM 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. 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. Calculate the contribution margin per unit of the scarce resource for each item. Hat Scarf Mittens Hat Scarf Mittens Contribution margin per Time in minutes 20 30 40 unit of scarce resource Cost of yarn per unit $ 4.00 $ 6.00 $ 4.00 Selling price per unit 15.00 15.00 15.00 Which item should Rachel focus on in order to maximize her profitability and resources? The highest CM is
BE5.7 - Using Excel to Determine Profitability Given a Constrained Resource Student Work Area PROBLEM 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. 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. Calculate the contribution margin per unit of the scarce resource for each item. Hat Scarf Mittens Hat Scarf Mittens Contribution margin per Time in minutes 20 30 40 unit of scarce resource Cost of yarn per unit $ 4.00 $ 6.00 $ 4.00 Selling price per unit 15.00 15.00 15.00 Which item should Rachel focus on in order to maximize her profitability and resources? The highest CM is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| BE5.7 - Using Excel to Determine Profitability Given a Constrained Resource | Student Work Area | |||||||||||
| PROBLEM | 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. | |||||||||||
| 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. | ||||||||||||
| Calculate the contribution margin per unit of the scarce resource for each item. | ||||||||||||
| Hat | Scarf | Mittens | ||||||||||
| Hat | Scarf | Mittens | Contribution margin per | |||||||||
| Time in minutes | 20 | 30 | 40 | unit of scarce resource | ||||||||
| Cost of yarn per unit | $ 4.00 | $ 6.00 | $ 4.00 | |||||||||
| Selling price per unit | 15.00 | 15.00 | 15.00 | Which item should Rachel focus on in order to maximize her profitability and resources? | ||||||||
| The highest CM is | . | |||||||||||
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