Business Finance Homework Help

1. Frisbees for Lithuania

You are the product manager for a Frisbee manufacturer, and you are analyzing new markets for your products.

Based on your market research for the Lithuania, you estimate that the market for Frisbees in that region will be 50,000 units for 2011, 60,000 units for 2012, and 70,000 units for 2013.

You project that your selling price will be $5 per Frisbee for 2011-2013. The variable cost for making each Frisbee in 2011 will be $2, and that this cost will grow by 5% per year. The fixed cost for entering the market (including opening an office, hiring sales staff, paying licensing fees, etc) is estimated at $100,000 based on current currency exchange rates.

Based on these estimates and projections, create a spreadsheet model to estimate costs, revenues, and profits for 2011, 2012, and 2013.

2. Wall Model

Suppose that you are working for a general contractor (“the original consulting firm”) who has asked you to build a spreadsheet model to help her to create a client bid to build a wall.

Build a spreadsheet model to help her create a bid to build a wall. You will offer two options—lava rock or brick. Both walls will be built by crews of two. Crews will work three eight-hour days to build either type of wall. The wall will be 20 feet long, 6 feet tall and 2 feet thick. Wages will be $10 per hour per person. You will have to add 20% to wages to cover benefits. Lava Rock will cost $3 per cubic foot. Brick will cost $2 per cubic foot. Your bid must add a profit margin of 30% to your expected cost.

You anticipate that this spreadsheet will be utilized again in the future, with different materials and costs, different wall sizes, and different requirements for profit margins. Also, be mindful of the fact that the future users of this spreadsheet may have little or no familiarity with Excel, will be very busy and under a lot of pressure, and may receive little training on how to use this spreadsheet model.