Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
7th Edition
ISBN: 9781285418681
Author: Cliff Ragsdale
Publisher: Cengage Learning
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Chapter 3, Problem 3QP
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To develop: A spreadsheet model for the problem and solve it using solver.

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Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions Custom Designs Division Manufacturers crafted items, such as dining room suites Kitchen Cabinets Division Manufactures kitchen cabinets Banister Division Manufactures and installs quality oak railings   Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year.   Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the…
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