Costs Demand/Year

0
Fixed Cost Amount Duration (months) 100000
Copier 5000 12 200000
Store Rent 400 1 300000
400000
Variable Cost per copy 500000
Operating Cost 0.03

SP 0.1 per copy

Operating Days 365
Capacity 100000 per year
No. of copiers required 5
Demand per day 2000 Copies per day
Demand per year 730000
Demand/year fulfilled 500000
Total Cost 44800
Total Revenue 50000
Profit 5200

Data Table
5200 1 2 3 4 5
500
1000
1500
2000
No. of Copiers
1
1
2
3
4
5
Costs

Fixed Cost Amount Duration (months) Demand/Day Demand/Year

Copier 5000 12 500 182500
Store Rent 400 1 1000 365000
1500 547500
Variable Cost 2000 730000
Operating Cost 0.03 per copy

SP 0.1 per copy

Operating Days 365
Capacity 100000 per year
No. of copiers required 3
Demand per day 774.9511 Copies per day
Demand per year 282857
Total Cost 28285.71
Total Revenue 28285.71
Profit 0
No. of Copiers
2
4
6
8
Costs Demand/Year
0
Fixed Cost Amount Duration (months) 100000
Copier 5000 12 200000
Store Rent 400 1 300000
400000
Variable Cost 500000
Operating Cost 0.03 per copy

SP 0.1 per copy

Operating Days 365
Capacity 100000 per year
No. of copiers required 5
Demand per day 2000 Copies per day
Demand per year 730000
Demand/year fulfilled 500000
Total Cost 44800
Total Revenue 50000
Profit 5200

Data Table
5200 1 2 3 4 5
500 -2800 -2025 -7025 -12025 -17025
1000 -2800 -800 1200 750 -4250
1500 -2800 -800 1200 3200 5200
2000 -2800 -800 1200 3200 5200
No. of Copiers
1
1
2
3
4
5

Chart Title
10000

5200
5000 3200
1200
-800
0 -2025
1
-2800 2 3 4 5
Daily Demand

Profit for 500 copi es /day

-5000 -7025 Profit for 2000 copi es /day

-10000 -12025

-15000 -17025

-20000

No. of Copiers
for 500 copi es /day
for 2000 copi es /day
No. of years of savings 40
Avg. Expected Return 10%
Future Value Required 1000000.00
Amt required to be allocated each year 2054.01
Dell sales

Year Sales
1 69
2 159
3 258
4 389
5 546
6 890
7 2014
8 2873
9 3475
10 5296
11 7759

Parameters of best-fitting curves

Linear
Intercept -1938.5
Slope 682.59
R^2 0.816
Power
Constant 38.687
Exponent 1.9974
R^2 0.934
Exponential
Constant 58.31
Exponent 0.461
R^2 0.987

a)

Since R^2 value for exponential trend curve is higher, it represents a better fit

b)
Sales for 1999 23359.84

c)
Since R^2 value for exponential trend curve is highest, we can safely say that sales for
DELL are growing exponentially

d)
 Sales
9000
8000
7000
6000
5000
4000 f(x) = 38.6870017596 x^1.9973654743
R = 0.9342501554
3000
2000
1000
0
0 2 4 6 8 10 12

Sales
9000
f(x) = 58.3142698408 exp( 0.4612837982 x )
8000 R = 0.987270397

7000

6000

5000

4000

3000

2000

1000

0
0 2 4 6 8 10 12

Sales
9000

8000

7000

6000

5000 f(x) = 682.5909090909x - 1938.4545454546

R = 0.8162456348
4000

3000

2000

1000
6000

5000 f(x) = 682.5909090909x - 1938.4545454546

R = 0.8162456348
4000

3000

2000

1000

0
0 2 4 6 8 10 12
Year Year Sales in million $
1987 1 69
1988 2 159
1989 3 258
1990 4 389
1991 5 546
1992 6 890
1993 7 2014
1994 8 2873
1995 9 3475
1996 10 5296
1997 11 7759
1998 12 12300
1999 13 18200
2000 14 25300
2001 15 31900
2002 16 31200
2003 17 35300
2004 18 41300
2005 19 49100
2006 20 55800
2007 21 57400
2008 22 61100
2009 23 61100
2010 24 52900
2011 25 61500
2012 26 62100
2013 27 56900
2014 28 55000
2015 29 58100
2016 30 50900
2017 31 61600

Parameters of best-fitting curves

Linear
Intercept -10858
Slope 2619.6
R^2 0.8944
Power
Constant 25.918
Exponent 2.4015
R^2 0.9534
Exponential
Constant 399.8
 Exponent 0.2077
R^2 0.8071

a)

Since R^2 value for power trend curve is highest, it represents a better fit

c)
Sincw R^2 value for power trend curve is highest, we can safely say that sales for DELL are growing
at an increasing rate
 Linear
70000
f(x) = 2619.6391129032x - 10858.4838709677
R = 0.8944443095
60000

50000

40000

30000

20000

10000

0
0 5 10 15 20 25 30 35

Power
70000
f(x) = 25.9183528444 x^2.4050853351
R = 0.9533682913
60000

50000

40000

30000

20000

10000

0
0 5 10 15 20 25 30 35

Exponential
70000
f(x) = 399.8044540011 exp( 0.2076647383 x )
R = 0.8071344861
60000

50000

40000

30000

20000

10000

0
0 5 10 15 20 25 30 35
30000

20000

10000

0
0 5 10 15 20 25 30 35
 Interest 1%
Present Vaue (PV) 25000 Months Opening Balance Interest Payment
Interesr/month 1% 0 25,000.00 250.00 - 556.11
No. of months 60 1 24,693.89 246.94 - 556.11
Future Value 0 2 24,384.72 243.85 - 556.11
Payment/month -556.11 3 24,072.45 240.72 - 556.11
4 23,757.07 237.57 - 556.11
5 23,438.53 234.39 - 556.11
6 23,116.80 231.17 - 556.11
7 22,791.86 227.92 - 556.11
8 22,463.66 224.64 - 556.11
9 22,132.19 221.32 - 556.11
10 21,797.40 217.97 - 556.11
11 21,459.26 214.59 - 556.11
12 21,117.74 211.18 - 556.11
13 20,772.81 207.73 - 556.11
14 20,424.43 204.24 - 556.11
15 20,072.56 200.73 - 556.11
16 19,717.17 197.17 - 556.11
17 19,358.24 193.58 - 556.11
18 18,995.71 189.96 - 556.11
19 18,629.55 186.30 - 556.11
20 18,259.74 182.60 - 556.11
21 17,886.22 178.86 - 556.11
22 17,508.97 175.09 - 556.11
23 17,127.95 171.28 - 556.11
24 16,743.12 167.43 - 556.11
25 16,354.44 163.54 - 556.11
26 15,961.87 159.62 - 556.11
27 15,565.38 155.65 - 556.11
28 15,164.92 151.65 - 556.11
29 14,760.46 147.60 - 556.11
30 14,351.96 143.52 - 556.11
31 13,939.36 139.39 - 556.11
32 13,522.65 135.23 - 556.11
33 13,101.76 131.02 - 556.11
34 12,676.67 126.77 - 556.11
35 12,247.32 122.47 - 556.11
36 11,813.69 118.14 - 556.11
37 11,375.71 113.76 - 556.11
38 10,933.36 109.33 - 556.11
39 10,486.58 104.87 - 556.11
40 10,035.33 100.35 - 556.11
41 9,579.58 95.80 - 556.11
42 9,119.26 91.19 - 556.11
43 8,654.34 86.54 - 556.11
44 8,184.77 81.85 - 556.11
45 7,710.51 77.11 - 556.11
46 7,231.50 72.32 - 556.11
47 6,747.71 67.48 - 556.11
48 6,259.07 62.59 - 556.11
49 5,765.55 57.66 - 556.11
50 5,267.10 52.67 - 556.11
51 4,763.66 47.64 - 556.11
52 4,255.18 42.55 - 556.11
53 3,741.62 37.42 - 556.11
54 3,222.93 32.23 - 556.11
55 2,699.05 26.99 - 556.11
56 2,169.93 21.70 - 556.11
57 1,635.51 16.36 - 556.11
58 1,095.76 10.96 - 556.11
59 550.61 5.51 - 556.11
60 - 0.00 - 0.00 - 556.11
Closing Balance Principal Repaid Interest Repaid
24,693.89 56.11 250.00
24,384.72 62.23 246.94
24,072.45 68.42 243.85
23,757.07 74.66 240.72
23,438.53 80.97 237.57
23,116.80 87.34 234.39
22,791.86 93.78 231.17
22,463.66 100.27 227.92
22,132.19 106.84 224.64
21,797.40 113.47 221.32
21,459.26 120.16 217.97
21,117.74 126.93 214.59
20,772.81 133.76 211.18
20,424.43 140.65 207.73
20,072.56 147.62 204.24
19,717.17 154.66 200.73
19,358.24 161.77 197.17
18,995.71 168.95 193.58
18,629.55 176.20 189.96
18,259.74 183.52 186.30
17,886.22 190.92 182.60
17,508.97 198.39 178.86
17,127.95 205.93 175.09
16,743.12 213.55 171.28
16,354.44 221.25 167.43
15,961.87 229.02 163.54
15,565.38 236.87 159.62
15,164.92 244.80 155.65
14,760.46 252.81 151.65
14,351.96 260.90 147.60
13,939.36 269.07 143.52
13,522.65 277.32 139.39
13,101.76 285.66 135.23
12,676.67 294.08 131.02
12,247.32 302.58 126.77
11,813.69 311.16 122.47
11,375.71 319.84 118.14
10,933.36 328.60 113.76
10,486.58 337.44 109.33
10,035.33 346.38 104.87
9,579.58 355.40 100.35
9,119.26 364.52 95.80
8,654.34 373.73 91.19
 8,184.77 383.02 86.54
7,710.51 392.42 81.85
7,231.50 401.90 77.11
6,747.71 411.48 72.32
6,259.07 421.16 67.48
5,765.55 430.93 62.59
5,267.10 440.80 57.66
4,763.66 450.77 52.67
4,255.18 460.84 47.64
3,741.62 471.01 42.55
3,222.93 481.28 37.42
2,699.05 491.65 32.23
2,169.93 502.13 26.99
1,635.51 512.71 21.70
1,095.76 523.40 16.36
550.61 534.20 10.96
- 0.00 545.10 5.51
- 556.11 556.11 - 0.00