B$Hours Provided56 Fixed Costs78 Variable Costs9 Variable Cost Per Hour10 Total Costs111213 Minimum Total Cost Model14 $15161718AFixed Cost Per Hour19202122TRUETRUEFALSE1,334,2003327670BProcess Pros$500CABQ Consulting$ 178,000.00 $356.00104,500.01209.00282,500 $0280,000.00 $220.00$DTema Han5,00026,700.005.341,025,000.00205.001,051,700 $ETotal5,5001,334,200 Cairo Consulting wants to determine whether reselling process consulting servicesprovided by third parties would reduce the costs of this type of consulting. Switch to theProcess Providers worksheet, and then run Solver to solve this problem as follows:a. Set the objective as minimizing the value in cell E10 (Total Costs).b.Use the range B4:D4 as the changing variable cells.Adjust the hours provided by each company using the following constraints:E4=5500, the total hours of process consulting signedE10 is less than or equal to 1350000, the maximum third-party feesB4:D4 is less than or equal to 5000, the maximum hours provided by a singlethird-party providerB4:D4 should be an IntegerRun Solver, keep the solution, and then return to the Solver Parameters dialogbox. Save the model to the range A14:A21, and then close the Solver Parametersdialog box.C.d.e.f.9.

Open Solver Parameters. Enter the objective cell details in set objective. Select Min as we are…

Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows: Set the objective as minimizing the value in cell E10 (Total Costs). Use the range B4:D4 as the changing variable cells. Adjust the hours provided by each company using the following constraints: E4-5500, the total hours of process consulting signed E10 is less than or equal to 1350000, the maximum third-party fees B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider B4:D4 should be an Integer Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box. a. b. C. d. e. f. 9.

Cairo Consulting wants to determine whether reselling process consulting services provided by third parties would reduce the costs of this type of consulting. Switch to the Process Providers worksheet, and then run Solver to solve this problem as follows: Set the objective as minimizing the value in cell E10 (Total Costs). Use the range B4:D4 as the changing variable cells. Adjust the hours provided by each company using the following constraints: E4-5500, the total hours of process consulting signed E10 is less than or equal to 1350000, the maximum third-party fees B4:D4 is less than or equal to 5000, the maximum hours provided by a single third-party provider B4:D4 should be an Integer Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range A14:A21, and then close the Solver Parameters dialog box. a. b. C. d. e. f. 9.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7CE

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