Case 5-2 Template

INSTRUCTIONS: Read the case in the textbook. As a team, answer the questions in this spreadsheet, then save and submit
the assignment as one Microsoft Excel attachment. Also, submit a 1-paragraph Microsoft Word document explaining any
issues or successes you had in answering these questions.
Refer to and use the following abbreviations for the problems below:
R = Royalty Payment
CT = Artist Credit Total
SV = Share Value
CV = Credit Value
RP = Retail Price
PD= Packaging Deduction
R%=Royalty Percentage of Suggested Retail Price minus packaging
1. Ziam wants to know how much his royalty will be for a song he has written. How will it be calculated? Write the steps or
the formulas that will be used to calculate his royalty payment.
(Write the answer in this cell.)
R = CT * SV * CV

2. Ziam has written a popular song titled Going There, which has been recorded by a well-known performer. He recently
received a royalty check for $7,000. If Ziam gets a 0.5 share of the royalties and the credit value is $3.50, what was the
credit total that his song earned? Write out the problem in the form of an equation and solve it.
(Use the equation below and show your work in this cell to solve for the credit total.)
Manual Equation: R = (CT)(SV)(CV)
7000 = (CT)(0.5)(3.5)
7000 = (CT)(1.75) --> CT = 7000/1.75 = $4000

Use the marked cells below to fill in the appropriate numbers for the variables (CV, SV, and R) to check your answer for the
credit total.
Variables Used

CV=
SV=
R=

$3.50
0.50
$7,000.00

Excel Formula

CT=

$4,000.00

Use the cursor to highlight the yellow cell and look at the area above the column
headings to see the background formula. You should see the formula,
=E15/(E13*E14). By changing the CV, SV, or R values in the Excel reference
formula you can experiment with various what-if scenarios that will change the
CT value. Give it a try.
3. Ziam quickly published another song, Take Me There, that is played even more often than Going There. If his first
song earns 4,000 credits and his second song earns 6,000 credits, what will the royalty payment be from the two songs if the
credit value remains at $3.50?
Use the equation below and show your work in this cell to solve for the royalty payment.
Manual Equation: R = (CT)(SV)(CV)
The formula is multiplicative. Therefore, if the song credits went up from 4000 to 6000, this is a rise by a factor of 1.5.
Therefore, the total revenue is multiplied by 1.5. $7,000 * 1.5 = $10,500

Use the marked cells below to fill in the appropriate numbers for the variables (CT, SV, CV) to check your answer for the
royalty payment.
Variables Used
CT= $6,000.00
SV=
0.50
CV=
$3.50
Excel Formula

R= $10,500.00
Use the cursor to highlight the yellow cell and look at the area above the column
headings to see the background formula. You should see the formula,
=E24*E25*E26. By changing the CT, SV, or CV values in the Microsoft Excel
reference formula, you can experiment with various what-if scenarios that will
change the R total. Try it.

4. Ziam is considering an offer to perform his own songs on a CD to be titled Waiting There. In the past, he has written but
not performed his music. If Ziams royalty is 0.12 of the suggested retail price of $15.00, but 0.25 of the retail price is
deducted for packaging before Ziams royalty is calculated, how much will he receive for sale of the CD? Write your answer
in the form of an equation and solve it.
Use the equation below and show your work in this cell to solve for the royalty payment.
Manual Equation: R = (PD - 0.25 * R%)(0.12)
R = (15 - (0.25 * 15))(0.12) = 11.25 * 0.12 = $1.35

Use the marked cells below to fill in the appropriate numbers for the variables (CT, SV, CV) to check your answer for the
royalty payment.
Variables Used

RP=
PD=
R%=

$15.00
0.25
0.12

Excel Formula

R=

$1.35
Use the cursor to highlight the yellow cell and look at the area above the column
headings to see the background formula. You should see the formula, =(E35E36*(E35))*(E37). By changing the RP, PD, or R% values in the Microsoft Excel
reference formula, you can experiment with various what-if scenarios that will
change the R total. Try it.

e and submit
explaining any

ite the steps or

er. He recently
at was the

nswer for the

bove the column

mula,
reference
will change the

. If his first
two songs if the

r of 1.5.

er for the

bove the column

mula,
osoft Excel
narios that will

has written but

ail price is
te your answer

er for the

bove the column

mula, =(E35Microsoft Excel
narios that will

Case 6-2 Template

INSTRUCTIONS: Read the case in the textbook. As a team, answer the questions in this spreadsheet, then save and submit th
assignment as one Microsoft Excel attachment. Also, submit a 1-paragraph MicrosoftWord document explaining any issu
successes you had in answering these questions.
Refer to and use the following abbreviations for the problems below:
PS = Public Subscribers
AD = Advertisers
TC = Telephone Customers
ISP = Internet Customers
TOT = Total Customers

1. What percentage of the total does each of the four customer groups represent? Round to the nearest hundredth of a pe
(Show your work in this cell to solve for the percentage of the total that each of the four customer groups represent.)
TOT = 70000 + 58000 + 30000 + 18000 = 176000
%PS = (PS)/(TOT) = (70000)/(176000) * 100% = 39.77%
%AD = (AD)/(TOT) = (58000)/(176000) * 100% = 32.95%
%TC = (TC)/(TOT) = (30000)/(176000) * 100% = 17.05%
%ISP = (ISP)/(TOT) = (18000)/(176000) * 100% = 10.23%

Use the cells below to fill in the appropriate numbers for the variables (PS, AD, TC, ISP) to check your answers.
Variables Used
PS=
70,000
AD=
58,000
TC=
30,000
ISP=
18,000
TOT=
176,000
Excel Formulas

PS % of total
AD % of total
TC % of total
ISP % of total

39.77%
32.95%
17.05%
10.23%
Use the cursor to highlight the yellow cells and look at the area above the
headings to see the background formulas. What is great about a Microsof
reference formula is you can change any of the non-total variables and th
Percentage answers will change; thus, allowing many what-if scenarios. T

2. Minhs data shows that on average only 4.6% of customers were purchasing complementary services available within M
Systems. By using his companys services, Minh was projecting that these percentages would triple across all user groups w
year. a) How many customers would that equate to in total for each group? b) What would be the difference compared to
levels?

(Show your work in this cell to solve for the total number of customers in each group and the difference compared to current
PS = 0.046 * 70000 * 3 = 3220 * 3 = 9660 (difference is 0.046 * 70000 * 2 = 6440)
%AD =0.046 * 58000 * 3 = 2668 * 3 = 8004 (difference is 0.046 * 58000 * 2 = 5336)
%TC = 0.046 * 30000 *3 = 1380 * 3 = 4140 (difference is 0.046 * 30000 * 2 = 2760)
%ISP = 0.046 * 18000 * 3 = 828 * 3 = 2484 (difference is 0.046 * 18000 * 2 = 1656)

Use the cells below to fill in the appropriate numbers for the variables (PS, AD, TC, ISP, current purchasing %, projected multi
and % difference) to check your answers.
Variables Used

PS=
AD=
TC=
ISP=
Current
Purchasing %
Projected
multiple
factor
% Difference

Excel Formulas
PS=
AD=
TC=
ISP=

70,000
58,000
30,000
18,000
4.60%
3.00

9.20%

Part A
Part B
$9,660.00 $6,440.00
$8,004.00 $5,336.00
$4,140.00 $2,760.00
$2,484.00 $1,656.00
Use the cursor to highlight the yellow cells and look at the area above the
headings to see the background formulas. What is great about a Microsof
reference formula is you can change any of the variables and the cells wit
will change; thus, allowing many what-if scenarios. Try it.

3. Customer complaint data showed that within the last year, complaints by category were as follows: publication subscrib
advertisers, 423; telephone service customers, 4,411; and ISP customers 823. a) What percentage of customers (round to t
decimal places)complained within the last year in each category? b) If the CRM software were able to reduce complaints b
each year over the next 2 years, how many complaints would there be by category at the end of that time period? And c) W
would the number of complaints at the end of 2 years represent on a percentage basis?

(Use this cell to answer parts a, b, and c. Be sure to show your work.)
%PS = 1174/70000 * 100% = 1.67%
%AD = 423/58000 * 100% = 0.73%
%TC = 4411/30000 * 100% = 14.70%
%ISP = 823/18000 * 100% = 4.57%
Part B:
PS Complaints = 0.5(0.5(1174)) = 293.5 = 294
AD Complaints = 0.5(0.5(423)) = 105.75 = 106
TC Complaints = 0.5(0.5(4411)) = 1102.75 = 1103
ISP Complaints = 0.5(0.5(823)) = 205.75 = 206
Part C:
It would represent 0.5 * 0.5 * 100% = 25% of the original

Now use the cells below to fill in the appropriate numbers for the variables to check your answers.
Variables Used

Complaints

Customers

PS=
AD=
TC=
ISP=
TOT=

1
1
1
1
4

Complaint
reduction
Factor

1%

Excel Formulas
PS=
AD=
TC=
ISP=

1
1
1
1
4

Part A
Part B
Part C
100.00%
$0.00
0.01%
100.00%
$0.00
0.01%
100.00%
$0.00
0.01%
100.00%
$0.00
0.01%
Use the cursor to highlight the yellow cells and look at the area above the
headings to see the background formulas. What is great about a Microsof
reference formula is you can change any of the variables and the cells wit
will change; thus, allowing many what-if scenarios. Try it.

readsheet, then save and submit the

Word document explaining any issues or

d to the nearest hundredth of a percent.

ustomer groups represent.)

heck your answers.

ells and look at the area above the column

as. What is great about a MicrosoftExcel
ny of the non-total variables and the Total and
allowing many what-if scenarios. Try it.

entary services available within Media

ould triple across all user groups within 1
uld be the difference compared to current

he difference compared to current levels.)

rent purchasing %, projected multiple factor,

ells and look at the area above the column

as. What is great about a MicrosoftExcel
ny of the variables and the cells with formulas
if scenarios. Try it.

re as follows: publication subscribers, 1,174;

rcentage of customers (round to two
were able to reduce complaints by 50%
end of that time period? And c) What

nswers.

ells and look at the area above the column

as. What is great about a MicrosoftExcel
ny of the variables and the cells with formulas
if scenarios. Try it.