CHAPTER 3 THE CONCEPTUAL PAPER WORKSHEET e To solve the break-Even model Through a table of relevant data, finding the answer where PROF IT is exactly zero o Through a graphical representation of the relevant data, finding the answer from the graph Through a system of linear simultaneous equations, finding the answer by solving the system of linear equations
CHAPTER 3 THE CONCEPTUAL PAPER WORKSHEET To solve the Break-Even Model ⚫ Through a table of relevant data, finding the answer where PROFIT is exactly zero. ⚫ Through a graphical representation of the relevant data, finding the answer from the graph. ⚫ Through a system of linear simultaneous equations, finding the answer by solving the system of linear equations
G CONCEPTUAL PAPER WORKSHEET CPW) To highlight the important modelling and package handling issues o The construction of a cpw is useful in three ways e To clarify any academic modelling issues To determine the size of the worksheet and the range of cells that will be used o To identifies the range of package facilities that will need to be activated in constructing the model through a worksheet
CONCEPTUAL PAPER WORKSHEET (CPW) ⚫ To highlight the important modelling and package handling issues ⚫ The construction of a CPW is useful in three ways : ⚫ To clarify any academic modelling issues. ⚫ To determine the size of the worksheet and the range of cells that will be used. ⚫ To identifies the range of package facilities that will need to be activated in constructing the model through a worksheet
G WHAT ISA WORKSHEET o Alarge two dimensional piece of paper COLUMNS---LETTER LABELS ●ROWS- NUMBER LABELS CELL/BOX---combination of column and row Example Table 3.1 o On worksheet the user enters instructions that enable the package to perform relevant data manipulations o Two software packages The SPREADSHEET package EXCEL e To be controlled through MENUS The STATISTICAL package MNITAB To be controlled through COMMANDS
WHAT IS A WORKSHEET ? ⚫ A large two dimensional piece of paper ⚫ COLUMNS---LETTER LABELS ⚫ ROWS--- NUMBER LABELS ⚫ CELL/BOX---combination of COLUMN and ROW ⚫ Example Table 3.1 ⚫ On WORKSHEET, the user enters instructions that enable the package to perform relevant data manipulations. ⚫ Two software packages ⚫ The SPREADSHEET package EXCEL ⚫ To be controlled through MENUS ⚫ The STATISTICAL package MNITAB ⚫ To be controlled through COMMANDS
e User inputs of CPW o A clear specification of the academic issues(THE THEORETICAL MODEL Is the problem properly defined? Is the model properly structured? e Are all the variables required specified? e Are the variables of interest properly defined? o Explicit recognition of the package handling facilities(BUILDING A WORKSHEET
User inputs of CPW ⚫ A clear specification of the academic issues (THE THEORETICAL MODEL ) ⚫ Is the problem properly defined? ⚫ Is the model properly structured? ⚫ Are all the variables required specified? ⚫ Are the variables of interest properly defined? ⚫ Explicit recognition of the package handling facilities(BUILDING A WORKSHEET )
SECTION CREATING A TABLE OF DATA e Four inputs into the break-Even model o SELLING PRICE per unit (p) ● FIXED COSTS(FC), o VARIABLE COST per unit (VC), and RANGE Of OUTPUts ●q- quantity to produce To determine size of the worksheet to be created
SECTION I: CREATING A TABLE OF DATA Four inputs into the Break-Even model ⚫ SELLING PRICE per unit (p) , ⚫ FIXED COSTS (FC) , ⚫ VARIABLE COST per unit (VC) , and ⚫ RANGE of OUTPUTS ⚫ q---quantity to produce ⚫ To determine SIZE of the worksheet to be created
G BASIC INPUTS ●A1-A23(abe3.2) Cell A9: FORMULA: =A8+10 .'=means that this cell input is a formula and not a label or a number CoPY the IDEA CONTAINED in A9 INTO A10 and then ALL THE WAY THROUGH TO A23 ● TOTAL REVENUE COLUMN ●B7-TR cell B8: FORMULA: =SBS3* A8 ●PR| CEXQUANTITY S--RELATIVE and an ABSOLUTE CELL ADDRESS ● X is replaced by o COPY the idea contained in B8 into the cells B9 THROUGH TO B23
BASIC INPUTS ⚫ A1—A23 (Table 3.2) ⚫ Cell A9: FORMULA : =A8+10 ⚫ '=' means that this cell input is a formula and not a label or a number ⚫ COPY the IDEA CONTAINED in A9 INTO A10 and then ALL THE WAY THROUGH TO A23. TOTAL REVENUE COLUMN ⚫ B7—TR ⚫ cell B8: FORMULA : =$B$3*A8 ⚫ PRICExQUANTITY ⚫ $--RELATIVE and an ABSOLUTE CELL ADDRESS. ⚫ X is replaced by * ⚫ COPY the idea contained in B8 into the cells B9 THROUGH TO B23
G TOTAL COST COLUMN ●C7TC e C8: FORMULA: =$BS4+SBS5 A8 TC=FC+ VCq o CoPY the idea contained in c8 into the cells C9 THROUGH TO C23 G PROFIT ●D7— PROFIT ●D8: FORMULA:=B8-C8 o Copy the FORMULa in cell D8 into D9 THROUGH TO D23
TOTAL COST COLUMN ⚫ C7—TC ⚫ C8: FORMULA : =$B$4+$B$5*A8 ⚫ TC = FC + VCq ⚫ COPY the idea contained in C8 into the cells C9 THROUGH TO C23 PROFIT ⚫ D7—PROFIT ⚫ D8: FORMULA : =B8-C8 ⚫ Copy the FORMULA in cell D8 into D9 THROUGH TO D23
g FILE HANDLING FACILITIES ●FLE/SA∨E ●F|LE/OPEN C SUMMRY o DATA ENTRY: entering both labels/names and formula COPYING: to copy a formula to other o FILE HANDLING, to save and retrieve the worksheet
FILE HANDLING FACILITIES , ⚫ FILE/SAVE ⚫ FILE/OPEN SUMMRY ⚫ DATA ENTRY : entering both labels/names and formula ⚫ COPYING : to copy a formula to other ⚫ FILE HANDLING : to save and retrieve the worksheet
SECTION‖: WORKSHEET GRAPHS s What kind of graph is to be constructed? pie charts, bar graphs, X-Y graph e What is to measured along the x-axis? ●Q- quantity produced c What is to be measured up the Y-axis TR TC and Proft c Labelling the Lines (TR, TC and PROFIT)
SECTION II: WORKSHEET GRAPHS What kind of graph is to be constructed? ⚫ pie charts, bar graphs , X-Y graph,… What is to measured along the X-axis? ⚫ Q– quantity produced What is to be measured up the Y-axis? ⚫ TR , TC and PROFIT Labelling the Lines (TR , TC and PROFIT )
e Graph Titles ● Break- Even Analysis e Scaling of Axes
Graph Titles ⚫ Break-Even Analysis Scaling of Axes