These instructions are compatible with both Microsoft Windows and Mac operating systems.
At Placer Hills Real Estate, commission is split with other agencies based on price groups. You create a one-variable data table to display results for various split rates. Additionally, you create scenarios for selling price and commission and create a histogram about sales.
[Student Learning Outcomes 9.1, 9.3, 9.4, 9.6]
File Needed: PlacerHills-09.xlsx (Available from the Start File link.)
Completed Project File Name: [your name]-PlacerHills-09.xlsx
Skills Covered in This Project
- Build a one-variable data table.
- Use Solver.
- Create and manage scenarios.
- Create a histogram with a chart.
- Open the PlacerHills-09 start file. The file will be renamed automatically to include your name. Change the project file name if directed to do so by your instructor
- Enable the content security warning.
- Review formulas.
- Select cell C14 on the Calculator worksheet. The total commission is calculated by multiplying the selling price by the commission rate.
- Select cell C15. The IFS function checks the selling price (C12) to determine the split percentage (column D) based on the price group.
- Select cell C16. The IFS function checks the selling price (C12) to determine the administrative fee percentage (column E) and multiplies that percentage by the value in cell C15 to calculate the fee in dollars.
- Select cell C17. The net commission is calculated by subtracting the fees from the PHRE amount.
- Build one-variable data tables.
- Select cell C20 and create a reference to cell C15.
- Select cell D20 and create a reference to cell C17. Both formulas depend on cell C12, the one variable.
- Use cell D8 as the column input for the data table (Figure 9-87). (You can use any percentage from column D because its value is replaced by the proposed rates in column B in the data table.)
Figure 9-87 Data table setup for commission rates - Decrease the decimal two times for all values in the data table.
- Name cell ranges.
- Click the Price Solver worksheet tab.
- Click cell C12 and name the range Selling_Price. You cannot use spaces in a range name.
- Name cell C14 as Total_Commission and cell C17 as PHRE_Commission.
- Install the Solver Add-in and the Analysis ToolPak.
- Use Solver to find target PHRE net commission amounts.
- Build a Solver problem with cell C17 as the objective cell. For the first solution, set the objective to a value of 50000 by changing cell C12. Use the GRG Nonlinear solving method. Save the results as a scenario named $50,000.
- Restore the original values and run another Solver problem to find a selling price for a PHRE commission of 75000. Save these results as a scenario named $75,000.
- Restore the original values and run a third Solver problem to find a selling price for a net commission of $100,000. Save these results as a scenario and restore the original values.
- Manage scenarios.
- Show the $50,000 scenario in the worksheet.
- Create a Scenario summary report for cells C12, C14, and C17.
- Create a histogram for recent sales.
- Click the Sales Forecast sheet tab and select cell G13.
- Create a bin range of 10 values starting at 350,000 with intervals of 50,000, ending at 800,000 in cell G22.
- Use the Analysis ToolPak to create a histogram for cells E5:E26. Do not check the Labels box and select the bin range in your worksheet.
- Select cell H3 for the Output Range and include a chart.
- Position and size the chart from cell K3 to cell V19.
- Edit the horizontal axis title to display Selling Price and edit the vertical axis title to Number of Sales.
- Edit the chart title to display Sales by Price Group.
- Select and delete the legend.
- Delete cells G13:G22 (Figure 9-88).
Figure 9-88 Histogram and chart for sales data
- Save and close the workbook (Figure 9-89).
- Upload and save your project file.
- Submit project for grading.