excel
Model
| Copy shop | |||
| Inputs | |||
| Yearly rental cost | $5,000 | ||
| Other monthly fixed costs | $400 | ||
| Cost per copy | $0.03 | ||
| Charge per copy | $0.10 | ||
| Days per year | 365 | ||
| Months per year | 12 | ||
| Copies per copier per year | 100000 | ||
| Profit model | Part (a): Use two-way data table (copies rented along top, daily demand along side) | ||
| Copiers rented (trial value) | 3 | ||
| Daily demand (trial value) | 1000 | ||
| Copies made | 300000 | ||
| Annual profit | $1,200 | ||
| Part (b): Use Goal Seek (set Profit = 0 with B27 as the changing cell) | |||
| Copiers rented | 3 | ||
| Daily demand | 775.0 | ||
| Copies made | 282857.1 | ||
| Annual profit | $0 | = | 0 |
| Part (c) | |||
| Copiers rented (trial value) | 1 | ||
| Daily demand | 500 | ||
| Copies made | 100000 | ||
| Annual profit | -$2,800 | ||
| Two-way data table to get data for graph | |||
Profit versus # of Copiers
Demand 500 Demand 2000
# of copiers
Profit