Chapter 1 Economic Profit Problem (v2)
Project Description:
In this problem, you will calculate the total economic profit for each of the two alternatives and choose the best
employment alternative.
Steps to Perform:
Step Instructions Points Possible
1 Start Excel. Download and open the workbook named:
Chapter_1_Economic_Profit_Problem_Start. 0
2 In cell D27, by using a cell reference, enter the annual salary under the Belle Touché option. Refer to an
appropriate cell among H6-H10. 1
3 In cell E27, by using cell references, calculate the annual revenue under the Salon Volume option. Use cells
H12-H14. 1
4 In cell D28, by using cell references, calculate the annual tips under the Belle Touché option. Use cells H7
and H8. 1
5 In cell E28, by using cell references, calculate the annual tips under the Salon Volume option. Use cells H21
and E27. 1
6 In cells D29 and E29, do the following:
By using cell references, calculate the annual interest received. Use appropriate cells among H6-H10 and H12-
H25, if any.
Enter zero into the corresponding answer cell if there is no interest received for any of the options.
Note: Do not use the equal sign when entering a numeric value. 1
7 In cells D30 and E30, do the following:
By using cell references, calculate the annual value of leisure time. Use appropriate cells among H6-H10 and
H12-H25, if any.
Enter zero into the corresponding answer cell if there is no value of leisure time for any of the options.
Note: Do not use the equal sign when entering a numeric value. 1
8 In cell D31, by using cell references, calculate the total economic benefit. Use cells D27-D30. Use the Excel
SUM function. Copy the formula from cell D31 across column E. 1
9 In cells D32 and E32, do the following:
By using cell references, enter the annual one-time expenses. Use appropriate cells among H6-H10 and H12-
H25, if any.
Enter zero into the corresponding answer cell if there are no one-time expenses for any of the options.
Note: Do not use the equal sign when entering a numeric value. 1
10 In cells D33 and E33, do the following:
By using cell references, enter the annual rental expenses. Use appropriate cells among H6-H10 and H12-
H25, if any.
Enter zero into the corresponding answer cell if there are no rental expenses for any of the options.
Note: Do not use the equal sign when entering a numeric value. 1
11 In cells D34 and E34, do the following:
By using cell references, calculate the total annual amount of regular monthly expenses. Use appropriate cells
among H6-H10 and H12-H25, if any.
Enter zero into the corresponding answer cell if there are no monthly expenses for any of the options.
Note: Do not use the equal sign when entering a numeric value. 1
12 In cells D35 and E35, do the following:
By using cell references, calculate the annual cancellation expenses. Use appropriate cells among H6-H10,
H22-H25, and D27-E28, if any.