Chapter 11, Problem 1AE

The Excel worksheet form that appears below is to be used to recreate the example in the text related to Santa Maria Wool Cooperative. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.

You should proceed to the requirements below only after completing your worksheet.

Required:
Check vow worksheet by changing the cost of further processing undyed coarse wool in cell B12 to $30,000. The overall profit from processing all intermediate products into final products should now be $150,000 and the financial advantage of further processing coarse wool should now be $10,000. If you do not get these answers, find the errors in your worksheet and correct them.
How should operations change in response to this change in cost?