CHAPTER 3 THE CONCEPTUAL PAPER WORKSHEET

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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.

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• 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.

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• 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

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• 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 )

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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.

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• BASIC INPUTS
• A1A23 (Table 3.2)
• Cell A9 FORMULA A810
• '' 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
• B7TR
• cell B8 FORMULA B3A8
• PRICExQUANTITY
• --RELATIVE and an ABSOLUTE CELL ADDRESS.
• X is replaced by
• COPY the idea contained in B8 into the cells B9
  THROUGH TO B23

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• TOTAL COST COLUMN
• C7TC
• C8 FORMULA B4B5A8
• TC FC VCq
• COPY the idea contained in C8 into the cells C9
  THROUGH TO C23
• PROFIT
• D7PROFIT
• D8 FORMULA B8-C8
• Copy the FORMULA in cell D8 into D9 THROUGH TO
  D23

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• 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

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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 )

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• Graph Titles
• Break-Even Analysis
• Scaling of Axes

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SECTION III GENERATING A NUMERICAL SOLUTION

• Matrix A and Matrix b
• E1E4 TR
• F1F4 TC
• G1G4 q
• Matrix A is in the range E2 to G4

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• H1H4 RHS
• Matrix b is in the range H2 to H4
• Where to put the answer?
• J1J4 ANSWER
• To generate the answer by the following steps
• inform the package as to the whereabouts of the
  matrix A.
• inform the package that we would like to form the
  inverse of A , A-1.

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• inform the package where in the spreadsheet we
  would like to store the inverse matrix A-1
• inform the package as to the whereabouts of the
  matrix b
• inform the package that we would like to perform
  the multiplication A-1b
• inform the package where we would like the answer
  to be displayed

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