Cost Revenue
Cost Quantity at Price Number Sold Total
Item per Item Beginning of March in March in March Cost
Gold Floor Lamp 20 25 35 14
Blue Armchair 55 16 105 7
Wood Side Table 8 44 25 40
Glass Coffee Table 85 35 95 4
Directions >>>
STEP #1 Need help? Use the information from Part I - it has the formulas to use along with example and directions
Calculate Total Cost starting in cell G7
Total Cost = Cost per Item multiplied by Quantity
Copy this formula to the other 3 Items - Rows 8, 9, 10
STEP #2
Calculate Total Revenue starting in cell H7
Total Revenue = Price multiplied by Number Sold
Copy this formula to the other 3 Items - Rows 8, 9, 10
STEP #3
Calculate Profit starting in cell I7
Profit = total revenue minus total cost.
Copy this formula to the other 3 Items - Rows 8, 9, 10
STEP #4
Evaluate the data - answer these THREE questions
1 - Based on your profit calculations, what changes should you make to your inventory?
ANSWER HERE >>>
Based on the profit calculations, it is difficult to determine what specific changes should be made to the inventory. However, it can be observed that the Gold Floor Lamp and Wood Side Table have the highest profits, while the Blue Armchair and Glass Coffee Table have lower profits. Therefore, one possible change could be to increase the quantity of Gold Floor Lamps and Wood Side Tables and decrease the quantity of Blue Armchairs and Glass Coffee Tables. However, without further information about customer demand and preferences, it is impossible to make a definitive recommendation for inventory changes.
2 - Is there an item that should be purchased in a larger quantity or smaller quantity? 3 - Why or why not?
ANSWER HERE >>>