Configuration
ision) Variables
Rate
Mar
keting
– Sales Tax (%) to be collected per sale
per unit as percentage of sales price
HR
– Maximum # of units sale each employee can handle per month
Threshold
Threshold
Rate
Accounting
– Percentage of customers using Credit Card to pay for the purchase instead of Cash for each month
Marketing
Decision Variables | ||||||||||||||||||||||||||||||||||||||||
Products | Unit Price | Unit COGS | Ratio b/w Products | |||||||||||||||||||||||||||||||||||||
Iphone X | ||||||||||||||||||||||||||||||||||||||||
Iphone 8 | ||||||||||||||||||||||||||||||||||||||||
iWatch Series 3 | ||||||||||||||||||||||||||||||||||||||||
Sales (units) Projection | Jan | Feb | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | ||||||||||||||||||||||||||||||
Target Units (Meals) | ||||||||||||||||||||||||||||||||||||||||
Projected | Revenue | Iphone 8 Plus | ||||||||||||||||||||||||||||||||||||||
Total Revenue | ||||||||||||||||||||||||||||||||||||||||
Projected COGS | ||||||||||||||||||||||||||||||||||||||||
Total COGS | ||||||||||||||||||||||||||||||||||||||||
Gross Profit | ||||||||||||||||||||||||||||||||||||||||
HR
Employee Positions | Annual Salary | |
President | ||
Staff | ||
Number of Each Position on Payroll | ||
Monthly | Payroll Expense | |
Total Payroll Expense | ||
Accounting
Startup Investment |
Beginning Cash Balance |
Last Month Credit Card Intake |
Current Month Cash Intake |
Total Cash Onhand |
Operational Expense |
Overhead Expense |
Total Operational Expense |
Taxes |
Sales Tax Expense |
Payroll Tax Expense |
Total Tax Expense |
Total Cash Outflow |
Ending Cash Balance |
Reports
Graph 1 | Pie Chart showing breakdown of annual expenses into these four categories: COGS, Overhead, Payroll, and Taxes |
Graph 2 | Line Chart showing total Sales comparing to total expenses (including all tax expenses) by month |
Graph 3 | Pie Chart showing total units sold for the year with the beakdown of percentage of each product type (ratio between products sold) |
CIS 310 Management Information System
Kan Wang
DECISION MAKING USING DATA/INFORMATION – Microsoft Excel Assignment 100 points
Students will be given a new small business idea selling specific products to customers. Using Microsoft Excel, students will develop various data models to simulate an information system that provides business information for decision making. Students will utilize Excel to model the business operation, formulate the data into information, utilize the information to analyze scenarios, and draw conclusions for the business concept.
Your final Microsoft Excel project workbook (file) will include the following worksheets (tabs). Specific instructions, concepts, expectations, and demo will be provided during scheduled class hours (or via a video for online students). It is highly recommended you attend all classes (or review the video) to obtain the skills and understanding to complete this assignment.
The Business Idea:
· You are planning to open a small electronic store selling three Apple products.
You will be provided an Excel Template as a starting point. The Excel Template will contain the following sheets (Tabs) which you are to make functional as instructed in class:
· Configuration
· Marketing Model
· HR Model
· Accounting Model
· Graph & Charts
Instructions:
· For each sheet, the cell colored in yellow are
decision variable
cells. Within these cells, users of your excel model will be able to change the values contained within it. Decision variables are decision points that you, as a potential owner of this simulated business, may decide and/or test so the model will generate calculated results to help you determine how this business can be viable or profitable.
· For each sheet, the cell colored in gray are
calculated values
. Within these cells, you are expected to apply formulas so the sheet can yield correct calculated results based on your decisions entered into the decision variable cells.
· For all decision variables and calculated value cells, you are to make sure the
formatting
of the cell is correct. Example if the cell represent a percentage, it should be formatted to %.
· You are not to rearrange and/or reformat the layout within each sheet. The one exception is you are free to design your graphs in the last sheet as long as it meets the requirement stated in the template.
Grading:
Configuration Tab (10 Points) – Application Setting
· 1 point deduction for every cell not formatted correctly
· 2 points deduction for each missing value
Marketing Model Tab (25 Points) – Objective: Model, Revenue, COGS, and Gross Profit Monthly Projection
· 1 point deduction for every cell not formatted correctly
· 2 points deduction for every ‘data referencing’ error
· 4 points deduction for every calculation error
HR Model Tab (25 Points) – Objective: Model, Salary Expense, and Employer Tax Expense Monthly Projection
· 1 point deduction for every cell not formatted correctly
· 2 points deduction for every ‘data referencing’ error
· 4 points deduction for every calculation error
Accounting Model Tab (25 Points) – Objective: Model and Cash Flow Monthly Projection
· 1 point deduction for every cell not formatted correctly
· 2 points deduction for every ‘data referencing’ error
· 4 points deduction for every calculation error
Graph & Charts Tab (15 Points) – Objective: Executive Graphical Presentation
· 1 point deduction for each missing label to the data presented on the graph
· 2 points deduction for every ‘data referencing’ error
Outcomes of your completed Excel project file will be a tool for users to:
Model – framing of decision variables, presenting calculated data/information, and relationships between data variables for analysis
What-if analysis – checks the impact to the bottom line based on assumptions and changing of decision variables
Sensitivity analysis – the study of the impact that changes in one (or more) parts of the model (decision variables) have on other parts of the model
Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of output
Optimization analysis – An extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints.