Basic Quantitive

Project Overview

You will complete a Calculations and Report Document for this project. In part one, you will represent problems as mathematical expressions that you will then solve. In part two, you will explain what your calculations mean and how they inform your thinking about the problems. The ability to solve problems with math will help you with everything from managing your finances to baking new recipes.

Competency

In this project, you will master the following competency:

Use basic quantitative methods of problem solving

Scenario

You work at All-Store, a large general store that sells everything from groceries and office supplies to medicine, toys, and books. Unfortunately, the company’s profits have been down for the last six months because of competition, specifically from other local businesses and online vendors.

Jill Oliviera, All-Store’s general manager, has decided to rethink the store’s business strategies. One of her new ideas is to focus the business on just a few departments. This way, All-Store can specialize in those areas rather than continuing to support all of the current offerings.

Due to declining sales and the upcoming changes, Jill is worried about the business’s finances. She’s given you access to several company files and asked you to prepare a report. Your report should cover different situations that the business may face in the coming months.

Directions

Your manager is looking for your recommendations for how the store could best respond to: declining sales, reducing staffing, and purchasing the building.

To do this, download and fill out the Calculations and Report Document in the “What to Submit” section.

As you complete part one of this document, break down each of the three problems individually. When representing problems as expressions, don’t be afraid to try a few equations for each step to see what works. Use information and data from the company files in the “Supporting Materials” section to answer the questions.

In part two, give your recommendations to your manager: what do you think the company should do about declining sales, reducing staffing, and purchasing the building? Be sure to support your recommendations with quantitative evidence. Then, explain how you used mathematical expressions to solve these problems.

When you have completed both parts of the Calculations and Report Document, you can submit it as your deliverable.

Your Account Summary
Balance as of June 23: $50,396.00
Total Withdrawals: $67,548.51
Total Deposits: $67,698.94
Balance as of June 30: $50,546.43
Date
23-Jun
24-Jun
24-Jun
24-Jun
24-Jun
25-Jun
25-Jun
25-Jun
25-Jun
26-Jun
27-Jun
27-Jun
27-Jun
27-Jun
28-Jun
28-Jun
28-Jun
30-Jun
30-Jun
30-Jun
Description
DEPOSIT
GOODS DELIVERY
SHIPPING CHARGE
DEPOSIT
MKTING SVC
ACCOUNTING SVCS
GOODS DELIVERY
SHIPPING CHARGE
DEPOSIT
PAYROLL
GOODS DELIVERY
GOODS DELIVERY
SHIPPING CHARGE
DEPOSIT
GOODS DELIVERY
SHIPPING CHARGE
DEPOSIT
RENTAL CHARGE
SHIPPING CHARGE
DEPOSIT
Withdrawals
$
$
Deposits
$
8,698.18
$
7,442.06
$
9,334.62
$
8,282.30
$
10,532.21
$
23,409.57
6,445.16
100.00
$ 13,598.32
$
$
$
11,116.00
4,796.55
100.00
$
$
$
$
3,821.93
1,706.14
12,056.00
100.00
$
$
8,408.41
200.00
$
$
5,000.00
100.00
Balance
$59,094.18
$52,649.02
$52,549.02
$59,991.08
$46,392.76
$35,276.76
$30,480.21
$30,380.21
$39,714.83
$35,892.90
$34,186.76
$22,130.76
$22,030.76
$30,313.06
$21,904.65
$21,704.65
$32,236.86
$27,236.86
$27,136.86
$50,546.43
Loan Estimate
Date Issued
June 16
Loan ID
#123456789
Applicant
All-Store
Loan Term
5 years
Sale Price
$150,000
Purpose
Purchase
Loan Terms
Loan Amount
$100,000
Interest Rate
7.00%
Monthly Principal and Interest
$1,980.12
Prepayment Penalty
No
Balloon Payment
No
Fixed rate
Projected Payments
Years 1–5
Years 6–10
Years 11–15
Monthly Principal and Interest
$1,980.12
N/A
N/A
Property Insurance
$250.00
N/A
N/A
Property Taxes in Escrow
$1250.00
N/A
N/A
Total Monthly Payment
$3480.12
N/A
N/A
Costs at Closing
Estimated Closing Costs
$0.00
Note: Closing costs paid by seller
Down Payment
$50,000.00
Due to seller
1
All-Store Store Hours and Staffing Notes
Store Hours (require at least six sales associates and one manager during nonpeak hours):
•
Monday–Saturday: 7:00a.m.–10:00p.m.
•
Sunday: 9:00a.m.–10:00p.m.
Peak Hours (require at least 10 sales associates and two managers):
•
Monday, Thursday, and Friday: 5:00p.m.–7:00p.m.
•
Saturday: 10:00a.m.–7:00p.m.
•
Sunday: 12:00p.m.–5:00p.m.
Notes from the General Manager:
•
There are two types of employees: sales associates and managers.
•
Sales associates have an estimated labor cost of $12.50 per hour.
•
Managers have an estimated labor cost of $20 per hour.
•
Labor cost includes all taxes, benefits, and other costs, so you do not need to take those into
account.
•
Managers are full-time, so they typically work approximately 40 hours per week.
•
Sales associates are part time, so they must work no more than 30 hours per week.
•
Please don’t take time off into account in your work.
•
These are the minimum requirements for continuous coverage, and must be met in order
for the store to run.
All-Store Profit & Loss Statement
Net Profit (income)
$150,000.00
$100,000.00
$50,000.00
$January
February
March
April
May
June
Profit & Loss
Total revenue
Less cost of goods sold
Gross Profit
$
$
$
January
650,037.00 $
425,774.24 $
224,262.77 $
February
622,477.00 $
407,722.44 $
214,754.57 $
March
594,917.00 $
389,670.64 $
205,246.37 $
April
567,357.00 $
371,618.84 $
195,738.17 $
May
539,797.00 $
353,567.04 $
186,229.97 $
June
512,237.00
335,515.24
176,721.77
Less
Expenses
Accounting and legal fees
Advertising
Depreciation
Electricity
Insurance
Interest and bank charges
Shipping & postage
Printing and stationery
Professional memberships
Rent for premises
Repairs and maintenance
Training
Wages and salaries
Workers compensation
Total Expenses
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,597.00
10,424.43
3,800.00
2,700.00
9,200.00
504.46
1,601.88
488.35
580.00
5,000.00
774.14
121.85
47,000.00
3,500.00
88,292.11
2,273.00
7,828.92
3,800.00
2,700.00
9,200.00
409.24
2,816.37
715.25
580.00
5,000.00
209.72
191.27
45,698.00
3,500.00
84,921.76
2,396.00
5,432.84
3,800.00
2,700.00
9,200.00
344.53
2,116.86
542.00
580.00
5,000.00
455.88
170.53
48,111.00
3,500.00
84,349.64
2,788.00
8,426.54
3,800.00
2,700.00
9,200.00
569.77
2,338.60
371.18
580.00
5,000.00
935.95
176.69
47,327.00
3,500.00
87,713.74
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,328.00
1,735.09
3,800.00
2,700.00
9,200.00
331.61
2,092.21
484.02
580.00
5,000.00
80.64
177.25
44,779.00
3,500.00
76,787.83
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,116.00
6,167.04
3,800.00
2,700.00
9,200.00
586.74
2,324.49
456.18
580.00
5,000.00
812.08
146.02
45,819.00
3,500.00
83,207.55
Equals
Net Profit (income)
$
135,970.66 $
108,024.43 $
109,442.14
$
93,514.22
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
129,832.81 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
120,896.73 $