1. MGS 3040 SEC. 04 CHAPTER # 3 PAGE # 87 QUESTION 1 Application Exercises Group Members:  Michelle Barborino  Abbas Kazmi  Jihua liu  Brenden Luuney  Betty Myhand

2. Make the first two rows of your spreadsheet similar that in Figure 3-7 (Pg. 87) Resort Bicycle Rental Bicycle Inventory Valuation Group ‘C’ Presentation - Bicycle Rental (Page 87 Quest. 1)

3. Place the current date so that it is centered Resort Bicycle Rental Bicycle Inventory Valuation Thursday, February 11, 2010 Group ‘C’ Presentation - Bicycle Rental (Page 87 Quest. 1)

4. Use the formulas for Calculations Resort Bicycle Rental Bicycle Inventory Valuation Thursday, February 11, 2010 Make of BikeBike Cost Number on Hand Cost of Current Inventory Number of Rentals Total Rental Revenues Revenue per Bike Revenue as percent of Cost of Inventory Wonder Bike$32512$3,90085$6,375$531163.5% Wonder Bike II$3854$1,54034$4,570$1,143296.8% Wonder Bike Supreme$4758$3,80044$5,200$650136.8% LiteLift Pro$6558$5,24025$2,480$31047.3% LiteLift Ladies$6554$2,62040$6,710$1,678256.1% LiteLift Racer$7953$2,38537$5,900$1,967247.4% Group ‘C’ Presentation - Bicycle Rental (Page 87 Quest. 1)

5. Three Examples of decisions that management can make using this data. Management can increase the number of “Wonder Bike II” bicycles because of its high revenue as percent of cost of inventory. Management can reduce the number of “LiteLift Pro” bicycles because of its low revenue as percent of cost of inventory. Management can consider replacing “LiteLift Pro” with “Wonder Bike Supreme” of with “Wonder Bike” because of their demand. Wonder Bike II $3854$1,54034$4,570$1,143 296.8% LiteLift Pro $6558$5,24025$2,480$310 47.3% Group ‘C’ Presentation - Bicycle Rental (Page 87 Quest. 1)

6. Use the formulas for Calculations Resort Bicycle Rental Updated Spread Sheet As Suggested Bicycle Inventory Valuation Thursday, February 11, 2010 Make of BikeBike Cost Number on Hand Cost of Current Inventory Number of Rentals Total Rental Revenues Revenue per Bike Revenue as percent of Cost of Inventory Wonder Bike$32512$3,90085$6,375$531163.5% Wonder Bike II$3855$1,92034$4,5709140238.0% Wonder Bike Supreme$4758$3,80044$5,200$650136.8% LiteLift Pro$6555$327525$2,480$49675.7% LiteLift Ladies$6554$2,62040$6,710$1,678256.1% LiteLift Racer$7953$2,38537$5,900$1,967247.4% Group ‘C’ Presentation - Bicycle Rental (Page 87 Quest. 1)

7. Other Useful Calculations Make of BikeBike Cost Number on Hand Cost of Current Inventory Number of Rentals Total Rental Revenues Revenue per Bike Revenue as percent of Cost of Inventory Profit Per Bike Wonder Bike$32512$3,90085$6,375$531163.50% $ 206 Wonder Bike II$3854$1,54034$4,570$1,143296.80% $ 758 Wonder Bike Supreme$4758$3,80044$5,200$650136.80% $ 175 LiteLift Pro$6558$5,24025$2,480$31047.30% $ (345) LiteLift Ladies$6554$2,62040$6,710$1,678256.10% $ 1,023 LiteLift Racer$7953$2,38537$5,900$1,967247.40% $ 1,172 We added the “Profit Per Bike” Column. This shows how much net profit the store earns per bike. We found this out by taking the revenue per bike and subtracting the cost of the inventory. After that, we divided that by the number on hand.