# Excel MGS Chapter 3 Application Exercise #1 pg. 87

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

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

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

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

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%

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.

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%