Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.,
In addition to the costs of a ride, Marc estimates that other service costs are $50,000 plus $5 for each
customer (ride) in excess of 6,000 rides. Annual administrative and marketing costs are estimated to be
$25,000 plus 10% of the contribution margin.
Required:
1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the
possible operating income for Classic Limo, Inc., similar to that in Exhibit 13.15 on page 558 of
the textbook. You must submit this part of the assignment as an Excel file and utilize formulas
for all calculations. You will be graded on the answers provided, formulas/calculations, and
presentation. If you would like feedback on this part of the assignment before submitting,
please email your spreadsheet to me at least 48 hours prior to the due date.
2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for
planning for the year, which one of the nine scenarios would you choose? This should be based
on the scenario that is most likely. Be sure not to just go with the one you or the company
would prefer.
3) Write a two-page paper detailing the thought process used to make the final budgeting decision.
The paper must include what assumptions were made (i.e. – location of airport, economic
conditions) and the full rationale behind your decision. While you have to freedom to make
certain assumptions to support your selection, you must use at least two outside sources with
factual information to support your decision as well (i.e. – fuel prices, weather conditions,
Answer preview for Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.,
MLA
1100 Words