Cub Cadet LT46 (46\") 22HP Kohler Lawn Tractor 1,799.99 Cub Cadet LT50 (50\") 24

Question

Cub Cadet LT46 (46") 22HP Kohler Lawn Tractor 1,799.99

Cub Cadet LT50 (50") 24HP Kohler Lawn Tractor  $2,099.99

Wanda Mboweni has started a small business to sell ride-on lawn mowers, lawn tractors, and a new line of product in the market - robotic lawn mowers. She has selected two products to sell as shown in the table, and wants you to add two more products that fit the mower categories in her product line and also add variety to the product offerings. Wanda wants to earn the most profit she can, but she has to operate within some business constraints. She wants your help in estimating the maximum profit she can earn while meeting the following constraints. Wanda has obtained a business loan of $600,000 to purchase the inventory that she wants to sell. Therefore, the total wholesale cost of her inventory cannot exceed $600,000. Wanda must purchase a minimum of 10 units of each item from the manufacturers. Wanda does not want to stock more than 120 units of any model except the robotic type to minimize the risk of stocking too many of a slow moving mower model. Since the robotic models are not yet quite popular, Wanda wants to hold a lower stock level of such models not to exceed 30 for each such model. Do the following to help Wanda. a) Use the Internet to locate the retail price of two more lawn mower models that fit the mower categories in her product line and also add variety to the product offerings. You must have at least one robotic model. Consider the wholesale price of each unit to be 75% of the retail price for both units you find. b) Create a worksheet in Microsoft Excel to enter the data and set up your calculations as shown below. Apply some format to the worksheet to make it look good. Enter the data. Note that all the constraint related data should be added as shown.

Explanation / Answer

Below is the excel sheet. Total profit obtained is: $166824.6775.

Item # Products Retail Price Wholesale Cost Profit per Unit Purchase Quantity Total Cost Total Profit 1 Husqvarna 23 hp 48 in. Deck Yard Tractor 1800 1450 350 11 15950 3850 2 Toro TITAN ZX5000 Riding Lawn Mower 4000 3200 800 120 384000 96000 3 Cub Cadet LT46 (46") 22HP Kohler Lawn Tractor 1,799.99 1349.9925 450.00 10 13499.925 4499.975 4 Cub Cadet LT50 (50") 24HP Kohler Lawn Tractor 2,099.99 1574.9925 525.00 119 187424.1075 62474.7025 Totals 260 600874.0325 166824.6775 Constraints Buisness loan 600000 Minimum units of each model 10 Maximum units of each model except robotic type 120 Robotic model maximum unit 30

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