Notable Web Site Design is one of the largest Web site design and Web site hosting companies in the Midwest. The company generates revenue from Web site design and selling Web site hosting space on their Web servers. A fixed percentage of the total net revenue is spent on administrative, equipment,Â marketing, payroll, and production expenses. A bonus is expensed if the total net revenue for the quarter exceeds $14,000,000. The companyâ€™s projected receipts and expenditures for the next four quarters are shown in Table 3-20.
With this data, you have been asked to prepare a worksheet similar to Figure 3-87 on page
EX 210 for the next management team meeting. The worksheet should show total net revenues, total expenditures, and operating income for each quarterly period. Include a 3-D Pie chart on a separate sheet that shows the quarterly income contributions to the annual operating income.
What-If Analysis, Charting, and Working with Large Worksheets Excel Chapter 3 EX 223
During the meeting, one manager lobbied to reduce marketing expenditures by 1.25% and
payroll costs by 2.75%. Perform a what-if analysis reflecting the proposed changes in expenditures.
The changes should result in an operating income of $22,425,581 for the year. Using the original assumptions shown in Table 3-20, another manager asked to what extent marketing would have to be reduced to generate an annual operating income of $21,000,000. Marketing would to be reduced from 13.50% by 1.92% to 11.58%.
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