50.1K

Verified Solution

Link Copied!

Make two assumptions. Assumption$-1$: the $600$ jobs during the prior week required just

over $600$ hours of courier time. So assume that each job requires one hour of courier time.

Hence, as you calculate the number of hours and corresponding wage costs, you can use

the number of jobs as a replacement measure for the number of courier hours demanded.

Assumption$-2$: the $600$ jobs during the prior week resulted in four late deliveries. So

assume that DashMail will have, on average, one late delivery for every $150$ jobs.

Cell E$6$

Cell P$10$

Homework #$9$

HW$9-3$

$$ As you create the formula, realize that you will cut$/$paste this formula from cell F$11$ to the

entire cell range F$11-$P$110.$ So use the dollar sign when needed in your formula so that

references to column E and to row $10$ are absolute references instead of relative

references.

$$ Your profit formula should contain a revenue component and should subtract several

costs from that revenue. The revenue is simply the number of jobs multiplied by the price

per job, which is contained in cell B$1.$

$$ You might consider the information in cell range A$17-$B$22$ to make sure that you are

including all relevant costs. Your formula should account for fixed costs, missed$-$delivery

penalties, processing costs, and the cost of labor including benefits.

$$ You should use an IF statement to account for overtime labor only when needed. Your

overall formula might look something similar to:

$=$ Revenue $$ fixed costs $$ variable costs $$ overtime costs IF incurred.

$$ The formula may be expressed in other ways that are also valid and will return the same

numeric answer. The equation above is simply one way to construct the formula.

Answer & Explanation Solved by verified expert

See Answer