1. Excel MGS 3040-03 Chapter 3 Application Exercise #1 pg. 87
Claudette, Aleksey, Jadwiga, Barbara, Susan, & Justin

2. The Given Information:
Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12 85
$6,375
Wonder Bike II
$385 4 34
$4,570
Wonder Bike Supreme
$475 8 44
$5,200
Litelift Pro
$655 25
$2,480
Litelift Ladies 40
$6,710
Litelift Racer
$795 3 37
$5,900

3. Cost of Current Inventory
=Bike cost * Number of Bikes on Hand
Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12
$3,900 85
$6,375
Wonder Bike II
$385 4
$1,540 34
$4,570
Wonder Bike Supreme
$475 8
$3,800 44
$5,200
Litelift Pro
$655
$5,240 25
$2,480
Litelift Ladies
$2,620 40
$6,710
Litelift Racer
$795 3
$2,385 37
$5,900
Bike Cost
Number on Hand
Cost of Current Inventory
325 12
=B7*C7
385 4
=B8*C8
475 8
=B9*C9
655
=B10*C10
=B11*C11
795 3
=B12*C12

4. Revenue Per Bike = Total Rental Revenue/ Number of Bikes on Hand
Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12
$3,900 85
$6,375
$531
Wonder Bike II
$385 4
$1,540 34
$4,570
$1,143
Wonder Bike Supreme
$475 8
$3,800 44
$5,200
$650
Litelift Pro
$655
$5,240 25
$2,480
$310
Litelift Ladies
$2,620 40
$6,710
$1,678
Litelift Racer
$795 3
$2,385 37
$5,900
$1,967
Number on Hand 12 4 8 3
Total Rental Revenue
Revenue Per Bike
6375
=F7/C7
4570
=F8/C8
5200
=F9/C9
2480
=F10/C10
6710
=F11/C11
5900
=F12/C12

5. Revenue as a Percent of Cost of Inventory
=Total Rental Revenue/ Cost of Current Inventory
Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12
$3,900 85
$6,375
$531
163.5%
Wonder Bike II
$385 4
$1,540 34
$4,570
$1,143
296.8%
Wonder Bike Supreme
$475 8
$3,800 44
$5,200
$650
136.8%
Litelift Pro
$655
$5,240 25
$2,480
$310
47.3%
Litelift Ladies
$2,620 40
$6,710
$1,678
256.1%
Litelift Racer
$795 3
$2,385 37
$5,900
$1,967
247.4%
Cost of Current Inventory
$3,900
$1,540
$3,800
$5,240
$2,620
$2,385
Total Rental Revenue
$6,375
$4,570
$5,200
$2,480
$6,710
$5,900
Revenue as percent of Cost of Inventory
163.5%
296.8%
136.8%
47.3%
256.1%
247.4%

6. 3 Management decisions that can be made from this data
Continue purchasing Lite Lift Ladies -> Profit
Discontinue purchasing Lite lift Pro -> No profit
Sell bikes that are not turning into profit and reinvest the money into the business.

7. Resort Bicycle Rental Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Cost Per Rental
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12
$3,900
$75 85
$6,375
$531
163.5%
Wonder Bike II
$385 4
$1,540
$134 34
$4,570
$1,143
296.8%
Wonder Bike Supreme
$475 8
$3,800
$118 44
$5,200
$650
136.8%
Litelift Pro
$655
$5,240
$99 25
$2,480
$310
47.3%
Litelift Ladies
$2,620
$168 40
$6,710
$1,678
256.1%
Litelift Racer
$795 3
$2,385
$159 37
$5,900
$1,967
247.4%
Resort Bicycle Rental
Bicycle Inventory Valuation
Thursday ,September 24, 2009
Make of Bike
Bike Cost
Number on Hand
Cost of Current Inventory
Cost Per Rental
Number of Renatals
Total Rental Revenue
Revenue Per Bike
Revenue as percent of Cost of Inventory
Wonder Bike
$325 12
$3,900
$75 85
$6,375
$531
163.5%
Wonder Bike II
$385 4
$1,540
$130 34
$4,420
$1,105
287.0%
Wonder Bike Supreme
$475 8
$3,800
$120 44
$5,280
$660
138.9%
Litelift Pro
$655
$5,240
$90 25
$2,250
$281
42.9%
Litelift Ladies
$2,620
$170 40
$6,800
$1,700
259.5%
Litelift Racer
$795 3
$2,385
$155 37
$5,735
$1,912
240.5%