Instructions for Excel Spreadsheet Assignment #2 Preliminary Setup Information Your company manufactures and sells computer memory chips. You are part of the department whose job it is to figure out how many chips you should produce and sell. Let x represent the number (in millions) of chips that you plan to produce and sell. Your marketing department has figured out that if you produce x million chips then the selling price (in dollars) you must charge for each chip is given by the function p(x) = 150-2x. Your production department has figured out that if you produce x million chips then the cost of production (in millions of dollars) will be given by the function C(x) = 50 + 40x Your tax department has figured out that you should expect to pay 10% tax on any profits. The tax (in millions of dollars) on a profit of y millions of dollars will be given by the function T( y) = 0.1y Explanation of what you are to do on the Excel spreadsheet NOTE: You will not get credit for your work if you just enter output values. You must use formulas to have Excel calculate the output values for you. The columns for the spreadsheet have already been set up for you in the provide Excel document. Column A: This is where you enter the input (x) values for each of the functions. These are the input values that will be used in all of the formulas described below. I have entered 10 in Cell A4 and 25 in Cell A5 and 60 in Cell A6 to use as input values for the functions involved. Column B: Enter a formula to calculate the chip price p(x) = 150-2x, in dollars. Column C: Enter a formula to calculate the production cost C(x) = 50+4x, in millions of dollars. Column D: Enter a formula to calculate the revenue R(x) = x ∙ p(x), in millions of dollars. HINT: This should involve multiplying entries from Columns A and B. Column E: Enter a formula to calculate the profit p( x) = R( x) − c(x), in millions of dollars HINT: This should involve subtracting, in the correct order, entries from Columns C and D.
Instructions for Excel Spreadsheet Assignment #2
Preliminary Setup Information
Your company manufactures and sells computer memory chips. You are part of the
department whose job it is to figure out how many chips you should produce and sell. Let x
represent the number (in millions) of chips that you plan to produce and sell.
Your marketing department has figured out that if you produce x million chips then the
selling price (in dollars) you must charge for each chip is given by the function
p(x) = 150-2x.
Your production department has figured out that if you produce x million chips then the
cost of production (in millions of dollars) will be given by the function
C(x) = 50 + 40x
Your tax department has figured out that you should expect to pay 10% tax on any
profits.
The tax (in millions of dollars) on a profit of y millions of dollars will be given by the
function
T( y) = 0.1y
Explanation of what you are to do on the Excel spreadsheet
NOTE: You will not get credit for your work if you just enter output values. You must use
formulas to have Excel calculate the output values for you.
The columns for the spreadsheet have already been set up for you in the provide Excel
document.
Column A: This is where you enter the input (x) values for each of the functions. These are the
input values that will be used in all of the formulas described below.
I have entered 10 in Cell A4 and 25 in Cell A5 and 60 in Cell A6 to use as input values for
the functions involved.
Column B: Enter a formula to calculate the chip price p(x) = 150-2x, in dollars.
Column C: Enter a formula to calculate the production cost C(x) = 50+4x, in millions of dollars.
Column D: Enter a formula to calculate the revenue R(x) = x ∙ p(x), in millions of dollars.
HINT: This should involve multiplying entries from Columns A and B.
Column E: Enter a formula to calculate the profit p( x) = R( x) − c(x), in millions of dollars
HINT: This should involve subtracting, in the correct order, entries from Columns C and D.
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