Question: please help me on all questions. thank you! **please help me with all parts of this homework. thank you!!! Using the HW7 Starting File Excel
please help me on all questions. thank you!



**please help me with all parts of this homework. thank you!!!
Using the HW7 Starting File Excel file, answer the following problems (You must use the HW7 Starting File
for credit)
Problem 1. (100 pts. Each part is worth 25 pts) Henri of Henris French Cuisine (HFC), a chain of twelve restaurants,
is trying to decide if it makes sense to outsource the purchasing function. Currently, Henri employs two buyers at an
annual fixed cost of $45,000 per employee. Henris estimates that the variable cost of each placed purchase order is $15.
Value-Buy (VB), a group of purchasing specialists, will perform the purchasing function for a fixed annual fee of
$100,000 plus $5 for each purchase order placed.
Last year, HFC placed 1450 purchase orders last year and averages $182 income per order.
(a) Construct a base-case spreadsheet model that shows both of these alternatives side-by-side. Keep in mind good
spreadsheet modeling techniques. Use the same number of orders (stored in a single cell) to drive the calculations. What
is the better option? Input your response in J16
(b) Using last years quantity of purchase orders, which alternative would have been the better? Type your answer in the
space provided in Excel (Cell J16)
(c) Use Goal Seek to find the indifference point or crossover point (where total costs are equal) between these two
alternatives. (Hint: Goal Seek can work only with a single Set cell. Create a cell in your model that computes the
difference between the total costs of the two alternatives before running Goal Seek. Make this cell K4). Input the number
of orderst o breakeven in K5 and return the orders processed (C4) to its original value.
(d) Henri is considering adding another location. He is considering the following factors: Curb Appeal, Population,
Median Income, Local Suppliers and Square footage available. Each factor has been assigned a weight. These three
locations have been considered and have been given scores for each factor. The table is below:
Factor Weight Atlanta Birmingham Chicago
Curb Appeal 0.20 75 60 5



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