Ferguson Fitness

EXPLORE BUSINESS OPTIONS WITH WHAT-IF TOOLS

      GETTING STARTED

  • Open the file NP_EX19_8b_FirstLastNamexlsx, available for download from the SAM website.
  • Save the file as NP_EX19_8b_FirstLastNamexlsx by changing the “1” to a “2”.
    • If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically.
  • With the file NP_EX19_8b_FirstLastNamexlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet.
    • If cell B6 does not display your name, delete the file and download a new copy from the SAM website.
  • This project requires you to use the Solver add-in. If this add-in is not available on the Data tab in the Analyze group (or if the Analyze group is not available), install Solver as follows:
    • In Excel, click the File tab, and then click the Options button in the left navigation bar. Click the Add-Ins option in the left pane of the Excel Options dialog box. Click the Manage arrow, click the Excel Add-Ins option, and then click the Go button. In the Add-Ins dialog box, click the Solver Add-In check box and then click the OK button. Follow any remaining prompts to install Solver.

      PROJECT STEPS

1. Bruce and Doug Ferguson started Ferguson Fitness, providing comprehensive private and corporate fitness programs in Philadelphia, PA. Bruce made a workbook detailing the services they offers. He asks you to help analyze the data to determine how they can increase profits.

Switch to the Personal Training worksheet. Create a one-variable data table to calculate the sales, expenses, and profit based on the hours of personal training provided, as follows:

  1. In cell E5, enter a formula without using a function that references cell C4, which is the number of hours of personal training provided.
  2. In cell F5, enter a formula without using a function that references cell C19, which is the total sales from personal training.
  3. In cell G5, enter a formula without using a function that references cell C20, which is the total expenses related to personal training.
  4. In cell H5, enter a formula without using a function that references cell C21, which is the expected gross profit for personal training.
  5. Select the range E5:H10 and then complete the one-variable data table, using cell C4 as the Column input cell.

2. Create a two-variable data table to calculate the gross profit based on the hours of fitness training provided and the hourly rate charged:

    1. For the range E14:L19, create a two-variable data table using the hourly rate charged (cell C5) as the Row input cell.
    2. Use the hours of fitness training provided (cell C4) as the Column input cell.
    3. Apply a custom format to cell E14 to display the text Hours/Rate in place of the cell value.

3. Switch to the Consulting Create a Scatter with Straight Lines chart based on the range E4:G14 in the data table titled Consulting – Break-Even Analysis.

4. Modify the new chart as follows:

  1. Resize and reposition the chart so that it covers the range E15:H30.
  2. Remove the chart title from the chart.
  3. Add Sales and Expenses as the vertical axis title and Hours as the horizontal axis title.

5. Change the Bounds Axis Options as follows:

    1. Change the Minimum Bounds of the vertical axis to -30,000 and let the Maximum Bounds change automatically to 130,000.
    2. Change the Number format of the vertical axis to Currency with 0 decimal places and $ as the symbol.
    3. Change the Minimum Bounds of the horizontal axis to 700 and the Maximum Bounds to 1500.

6. Create two scenarios as follows to compare the costs of hiring fitness instructors with those for hiring certified personal trainers while increasing the number of hours provided:

    1. In the Scenario Manager, add two scenarios using the data shown in bold in Table 1 below.
    2. The changing cells for both scenarios are the nonadjacent cells C4, C11, and C14.
    3. Close the Scenario Manager without showing any of the scenarios.

Table 1: Fitness Consulting Scenario Values

Values Scenario 1 Scenario 2
Scenario Name Instructors Trainers
Hours_Sold_Consulting (C4) 1500 1800
Variable_Cost_Per_Hour_Consulting (C11) 53 55
Total_Fixed_Cost_Consulting (C14) 34,500 35,500

 

7. Switch to the Corporate Programs Create a Scatter with Straight Lines chart based on range E6:J14 in the data table titled Corporate Programs – Net Income Analysis.

8. Modify the new chart as follows:

  1. Resize and reposition the chart so that it covers the range E15:J30.
  2. Remove the chart title from the chart.
  3. Reposition the chart legend to the right of the chart.
  4. Add Net Income as the vertical axis title and Hours as the horizontal axis title.
  5. Change the colors of the chart to Monochromatic Palette 2 (2nd row in the Monochromatic palette).

9. Change the Bounds Axis Options for the new chart as follows:

    1. Change the Minimum Bounds of the vertical axis to -20,000 and leave the Maximum Bounds at 40,000.
    2. Set the horizontal axis to cross at the axis value -20,000.
    3. Change the Number format of the vertical axis to Currency with 0 decimal places and $ as the symbol.
    4. Change the Minimum Bounds of the horizontal axis to 900 and the Maximum Bounds to 1700.

10. Edit the chart series names as follows:

    1. For Series 1, use cell F5 as the series name.
    2. For Series 2, use cell G5 as the series name.
    3. For Series 3, use cell H5 as the series name.
    4. For Series 4, use cell I5 as the series name.
    5. For Series 5, use cell J5 as the series name.

11. Bruce wants to determine whether partnering with another fitness company would reduce the costs of fitness training services. Switch to the Training Providers worksheet, and then run Solver to solve this problem as follows:

  1. Set the objective as minimizing the value in cell F10 (Total Costs).
  2. Use the range C4:E4 as the changing variable cells.

Adjust the hours provided by each company using the following constraints:

  1. F4=600, the total hours of fitness services provided
  2. F10 is less than or equal to 130,000, the maximum fees paid to another fitness company
  3. C4:E4 is less than or equal to 220, the maximum hours provided by a single fitness company
  4. C4:E4 should be an Integer
  5. Run Solver, keep the solution, and then return to the Solver Parameters dialog box. Save the model to the range B14:B21, and then close the Solver Parameters dialog box.
  6. Switch to the All Services Use the Scenario Manager to create a Scenario Summary report that summarizes the effect of the Current, Increase Hourly, and Contractors scenarios. Use the range C17:E17 as the result cells.

12. Switch back to the All Services Use the Scenario Manager as follows to compare the profit per hour in each scenario:

  1. Create a Scenario PivotTable report for result cells C17:E17.
  2. Remove the Filter field from the PivotTable.
  3. Change the number format of the Profit_Per_Hour_Training, Profit_Per_Hour_ Consulting, and Profit_Per_Hour_Corporate fields (located in the Values box of the PivotTable Field List) to Currency with 2 decimal places and $ as the symbol.
  4. Use Personal Training as the row label value in cell B3, Consulting as the value in cell C3, and Corporate Programs as the value in cell D3.
  5. In cell A1, use Profit Per Hour as the report title.
  6. Format the report title using the Title cell style.
  7. Resize columns A–D to 17.00.

13. Add a PivotChart to the Scenario PivotTable worksheet as follows:

    1. Create a Clustered Column PivotChart based on the PivotTable.
    2. Resize and reposition the chart so that it covers the range A8:D21.
    3. Hide the field buttons in the chart. [Mac Hint: The Field Buttons option is not available on Excel 2019 for the Mac, so Mac users can ignore this instruction.]

Save your changes, close the workbook, and then exit Excel.

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