SPREADSHEET APPLICATION

IST 309 ASGN 3 SPREADSHEET APPLICATION MONSON COMPANY You are a manager for the Monson Company. Monson will purchase 16 new copiers in the next three weeks and you have been given the responsibility of selecting the manufacturer and model. After some preliminary research, you have limited her options to three photo copier systems: the Binford 2014, the Cyborg XL, and the Dyno-Mite. You have the expected costs of each are as follows: Binford 2014 It copies 12 pages per minute, has a 100-sheet paper tray; uses plain paper, zoom reduction and enlargement. A 3-year “no-questions asked” warranty is included in the purchase price. An extended warranty for the fourth year can be purchased for 16% of the original purchase price. Toner for this copier is $75 per cartridge, which lasts for 100,000 copies or approximately 3 months. The purchase price is $1,400. Binford has been in the copier business for 20 years and has a wonderful reputation for quality and reliability. Cyborg XL This copier copies 12 pages per minutes; prints on both plain paper and plastic over-head slide sheets. The paper tray can hold 90 sheets of standard copier paper. Maintenance for the system is sold in “copy blocks” of 250,000 copies. Monson will pay $129 per block. The sales person boasts that this copier needs no scheduled maintenance and so there will be little “down time” because of its excellent engineering and manufacturing. It will costs $1,240, retail. A collator can be purchased with the Cyborg XL for an additional $340. It uses the same toner cartridge that the Binford 2014 uses but seems to use toner faster. With your projected usage, you will replace cartridges about every 2 months. Dyno-Mite The Dyno-Mite is considered “high-end” for its category of copiers. It copies 15 pages per minutes; has two 100-sheet trays; has a zoom reduction and enlargement feature. New toner cartridges cost $97 and recycled, $62 each. With your current number of copies, each copier will use approximately 3 toner cartridges per year. Service and maintenance is covered for the first 500,000 copies under the manufacturer’s warranty. Maintenance contracts can be purchased for 200,000 copy blocks. Their cost is $159 per block. You can order the Dyno-Mite with a collator for an additional $435 and a sheet feeder (feeds multiple originals automatically) for $315. Purchase price for this system is $1,630. Perform the following analyses to make an informed decision: a. Create an interactive spreadsheet to compare the costs of the three photocopy systems. Monson made approximately 400,000 copiers per machine last fiscal year. Assume that copies made this coming fiscal year will be the same. Make two printouts: as-shown and another printout of the cell-contents (e.g., displays formulas instead of their results). (These are spreadsheet printouts #1 and #2.) b. Do what-if analysis. Monson is considering changing the way they do business. The new proposal would dramatically increase the number of copies made. Consider a 200% (i.e., twice the normal usage). Modify your figures and printout the new figures for each increase. (Printout just as-shown.) (This is spreadsheet printout #3) c. Based on the information in this case, which copier would you recommend? Why? Explain in a memo written to Walt Stewart, the company president. This memo becomes the cover for the three different spreadsheet printouts you must reference in and attach to your memo. Due by end of business day Wednesday, March 12