247.4% Give three examples of decisions that the management of the bike rental a

Question

247.4%

Give three examples of decisions that the management of the bike rental agency might make from this data.

What other calculations could you make from this data that would be useful to the bike rental management? create a second version of this spreadsheet to document this calculation

Resort Bicycle Rental Bicycle Inventory Valuation                                         Thrusday, July 28, 2011 Make of Bike Bike Cost Numbers on hand Cost of Current Inventory Number of Rentals Total Rental Revenue Revenue per Bike Revenue as Percent of Cost of Inventory Wonder Bike $325 12 $3,900 85 $6,375 $531.25 163.5% Wonder Bike ll $385 4 $1,540 34 $4,570 $1,142.50 296.8% Wonder Bike Supreme $475 8 $3,800 44 $5,200 $650.00 136.8% LiteLift pro $655 8 $5,240 25 $2,480 $310.00 47.3% LiteLift Ladies $655 4 $2,620 40 $6,710 $1,677.50 256.1% LiteLift Racer $795 3 $2,385 37 $5,900 $1,966.67

247.4%

Explanation / Answer

Answer :-

A spreadsheet such as this can help identify underutilized bikes based on the number of rentals. The LiteLift Pro and the WonderBike II have relatively low number of rentals compared to the other models. The manager should evaluate why these models are not rented as often as others. Is it the rental price or something about the models themselves that have limited appeal?

The revenue per bike can identify models that are very productive (e.g., LiteLift Racer). Management might want to purchase more highly productive models.

Revenue as a percent of cost of inventory shows management which models are good investments. The LiteLift Ladies and LiteLift Racer were expensive models, but are generating a good return. Buying more of these models might be worth considering.

The modified spreadsheet below has added a column for the number of rentals per bike. This information shows the popularity of the models. Management should consider buying more of the popular models and investigate why some models don’t seem to be popular.

247.4%

Resort Bicycle Rental Bicycle Inventory Valuation                                         Thrusday, July 28, 2011 Make of Bike Bike Cost Numbers on hand Cost of Current Inventory Number of Rentals Total Rental Revenue Revenue per Bike Revenue as Percent of Cost of Inventory Wonder Bike $325 12 $3,900 85 $6,375 $531.25 163.5% Wonder Bike ll $385 4 $1,540 34 $4,570 $1,142.50 296.8% Wonder Bike Supreme $475 8 $3,800 44 $5,200 $650.00 136.8% LiteLift pro $655 8 $5,240 25 $2,480 $310.00 47.3% LiteLift Ladies $655 4 $2,620 40 $6,710 $1,677.50 256.1% LiteLift Racer $795 3 $2,385 37 $5,900 $1,966.67

247.4%

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.