New Perspectives Excel 365 | Module 8: End of Module Project 1 Kent Bicycles, Ltd.
PERFORM WHAT-IF ANALYSES
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GETTING STARTED
1. Save the file NP_EX365_EOM8-1_FirstLastName_1.xlsx as NP_EX365_EOM8-1_FirstLastName_2.xlsx
a. Edit the file name by changing “1” to “2”.
b. If you do not see the .xlsx file extension, do not type it. The file extension will be added for you automatically.
2. With the file NP_EX365_EOM8-1_FirstLastName_2.xlsx open, ensure that your first and last name is displayed in cell B6 of the Documentation worksheet.
a. If cell B6 does not display your name, delete the file and download a new copy.
PROJECT STEPS
1. Marc Doherty is a sales analyst for Kent Bicycles, Ltd., a manufacturer of road and mountain bikes, in Grand Rapids, Michigan. Marc is developing a workbook to analyze the profitability of the company's Turbo Mountain Bike product line. He asks you to help him analyze the sales data to determine how the company can increase profits. Go to the Income Analysis worksheet, which lists the revenue and expenses for the Turbo Mountain Bike product line and calculates the net income. Marc wants to compare the financial outcomes for varying amounts of bikes sold and identify the number of units the company needs to sell to break even. Marc has already entered formulas in the range E5:H5 to extract data from the income analysis in the range B4:C26. In the range E5:H14, create a one-variable data table using cell C5 as the Column input cell, to calculate the revenue, expenses, and net income based on units sold.
2. Marc asks you to provide a visual representation of the break-even data. Create a Scatter with Straight Lines chart based on the units sold, revenue, and expenses in the data table (range E4:G14). Resize and position the chart so it covers the range I3:N15.
3. Marc wants you to clarify the purpose of the chart and focus on the areas containing data. Use Break-Even Point as the chart title. Change the Minimum bound of the horizontal axis to 1,500 and let the Maximum bound adjust automatically. Change the Minimum bound of the vertical axis to 1,500,000 and let the Maximum bound adjust automatically.
4. Marc also wants you to examine how varying sales price and volume affects net income from the mountain bikes. He has already entered the net income in cell E18 and sales prices in the range F18:J18. For the range E18:J27, create a two-variable data table using the price per unit (cell C6) as the Row input cell and the units sold (cell C5) as the Column input cell. In cell E18, create a custom number format that displays "Units Sold" instead of the net income value.
5. Marc has also created two scenarios in the Income Analysis worksheet. The Current scenario assumes the current values for units sold, price, and fixed expenses (salaries and benefits, distribution, and miscellaneous). The Lower Price scenario assumes more units sold at a lower price. He also wants you to create a scenario that assumes fewer units sold at a higher price. Create a scenario using the data shown in bold in Table 1 without applying any scenarios.
Table 1: Income Analysis Scenario Values
Scenario name | Raise Price Changing cells | C5:C6, C18:C20 Units_sold (C5) | 3550 Price_per_unit (C6) | 1750 Salaries_and_benefits (C18) | 915000 Distribution (C19) | 665000 Miscellaneous (C20) | 375000
6. Use the Scenario Manager to create a Scenario Summary report that summarizes the effect of the Current, Lower Price, and Raise Price scenarios. Use the total revenue, total expenses, and net income in the range C24:C26 as the result cells. Go to the Scenario Summary worksheet and delete column D, which repeats the current values.
7. Return to the Income Analysis worksheet. Create a Scenario PivotTable report of the three scenarios displaying the total revenue, total expenses, and net income (range C24:C26) for each scenario.
8. Go to the Scenario PivotTable worksheet. Marc wants you to make the PivotTable easier to interpret. Remove the filter from the PivotTable. Use Total Revenue as the row label in cell B3, use Total Expenses as the row label in cell C3, and use Net Income as the row label in cell D3. Display the Revenue, Expenses, and Net Income values in the Currency number format with no decimal places. Display negative values in red, enclosed in parentheses. Resize columns B:D to their best fit using AutoFit.
9. Marc also wants to compare the three scenarios in a chart. He asks you to create a Clustered Column PivotChart based on the PivotTable. Resize and position the chart so it covers the range A8:F24.
10. Go to the Product Line worksheet, which lists three mountain bikes that Kent Bicycles, Ltd. produces and sells. Marc wants you to find the product mix that generates the most net income for the company. Use Solver to maximize the percentage of difference between the even and optimal product mixes (cell F23) by changing the optimal product mix (range C10:E10) subject to the following constraints: · The total units sold in the optimal product mix (cell D18) must be 3,650. · The company needs to produce 1,100 or more of each bike model, so the optimal mix values for each model (range C10:E10) must be at least 1,100. · Those same values in the range C10:E10 must be integers. · The Remaining values for each assembled part (range J5:J13) must be greater than or equal to zero because the company cannot produce more mountain bikes than the parts available.
11. Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range H17:H24, and then close the Solver Parameters dialog box.
Your workbook should look like the Final Figures on the following pages. Save your changes, close the workbook, and then exit Excel. Follow the directions on the website to submit your completed project.
Final Figure 1: Scenario Summary Worksheet
Windows, Access, Excel, and PowerPoint are registered trademarks of Microsoft Corporation. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. This product is an independent publication and is neither affiliated with, nor authorized, sponsored, or approved by, Microsoft Corporation. Copyright (c) 2025 Cengage Learning. All Rights Reserved.
Final Figure 2: Scenario PivotTable Worksheet
Windows, Access, Excel, and PowerPoint are registered trademarks of Microsoft Corporation. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. This product is an independent publication and is neither affiliated with, nor authorized, sponsored, or approved by, Microsoft Corporation. Copyright (c) 2025 Cengage Learning. All Rights Reserved.
Final Figure 3: Income Analysis Worksheet
Windows, Access, Excel, and PowerPoint are registered trademarks of Microsoft Corporation. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. This product is an independent publication and is neither affiliated with, nor authorized, sponsored, or approved by, Microsoft Corporation. Copyright (c) 2025 Cengage Learning. All Rights Reserved.
Final Figure 4: Product Line Worksheet
Windows, Access, Excel, and PowerPoint are registered trademarks of Microsoft Corporation. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. This product is an independent publication and is neither affiliated with, nor authorized, sponsored, or approved by, Microsoft Corporation. Copyright (c) 2025 Cengage Learning. All Rights Reserved.