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MATH 1053 - Quantitative Methods for Business

Assignment 1 (SP2 2016)

DUE: Friday 8^th April by 12:00 noon (not midnight!)

 
Submission Instructions
·      Assignment submission is via Gradebook.  If you have problems submitting, keep proof of your submission attempt and contact me directly at julia.piantadosi@unisa.edu.au
·      Once submitted, do not edit any electronic files of your work.
 
 
 
Assignment Instructions
·      This assignment covers Weeks 1-4 and counts for 15% of your overall grade:
 

Assignment component	Mark
Business report	40
Appendix	60
Presentation	10
TOTAL	110

   
·      Assignments submitted late, without an extension being granted, will attract a penalty of 10 marks per each working day or any part thereof beyond the due date and time. Please refer to the Course Outline for the course policy regarding extensions.
·      An incorrectly or partially filled cover sheet will result in lost marks and delays in the marking and return of your assignment.
·      Not deleting the pages/text as requested will result in a loss of presentation marks.
·      Your assignment submission should be typed and observe the page limits.  Hand-written answers will be disregarded.
 
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Adelaide's Best Culinary Experience!
 
Emma has recently taken over her family’s restaurant business and has big plans to move the restaurant in a new direction and modernize the business. Emma’s aim is to create a dining space that is sophisticated and modern without being snobby. She wants dinners to have a truly memorable experience and try the best of what Adelaide and South Australia has to offer by highlighting local produce!
 
A recent trend at some of the world’s top restaurants is degustation–only dining.
 
"Degustation is a culinary term meaning "a careful, appreciative tasting of various foods" and focusing on the senses, high culinary art and good company."
 
Degustation involves sampling small portions of all of a chef's signature dishes in one sitting. Usually consisting of four to eight courses, it may be accompanied by a matching wine degustation which complements each dish. It allows head chefs to showcase their signature dishes and techniques.

After visiting a number of successful degustation-only restaurants in Sydney, Melbourne and Brisbane, Emma believes there is a market for this type of restaurant in Adelaide. South Australia’s position as a producer of premium food and wine is recognised and valued locally throughout Australia and around the world. Emma plans to capitalise on this reputation in her marketing campaign for the re-branded restaurant.
 
Can Emma’s idea of opening a degustation–only restaurant in Adelaide become a successful and profitable business? You have been approached for advice given your expertise and so you proceed with preparing a report that will include your analysis and recommendations. 
 
Perform the quantitative analyses requested in this document and prepare a business report for Emma in which you describe your findings and make appropriate recommendations. To avoid loss of marks, include FULL details of your working out in the Appendix only – the report body should only report the results of the calculations, not the calculations themselves.
 
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UNIVERSITY OF SOUTH AUSTRALIA Assignment Cover Sheet – Internal

 
An Assignment cover sheet needs to be included with each assignment. Please complete all details clearly.
 
When submitting the assignment online, please ensure this cover sheet is included at the start of your document. (Not as a separate attachment.)
 
Please check your Course Information Booklet or contact your School Office for assignment submission locations.

Name:

Student ID

Email:

Course code and title: MATH 1053 – Quantitative Methods for Business

School: Info. Tech. & Mathematical Sciences

Program Code:

Course Coordinator: Dr Julia Piantadosi

Tutor:

Day, Time, Location of Tutorial:

Assignment number:  1

Due date: by 12 noon on Friday, April 8, 2016

Assignment topic as stated in Course Outline: Case Study Report

 
Further Information: (e.g. state if extension was granted and attach evidence of approval, Revised Submission Date)
 
I declare that the work contained in this assignment is my own, except where acknowledgement of sources is made.
 
I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this will involve the University or its contractor copying my work and storing it on a database to be used in future to test work submitted by others.
 
I understand that I can obtain further information on this matter at http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.asp
 
Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement.
 

Signed:

Date:

 

Date received from student	Assessment/grade		Assessed by:
Recorded:		Dispatched (if applicable):

 
[ENTER REPORT TITLE]
 
[Enter the date of submission]
 
prepared by
[Enter your name]
 
Student ID: [Enter your student ID]
Tutorial: [Enter day, time, location of your tutorial]
Tutor: [Enter your tutor's name]
 
Introduction
 
(5 marks)

Purpose
Provide a qualitative description of report contents/problems addressed in the report (covering Appendices 1-4) and what insights the analyses will provide
Write this introduction after you have a clear understanding of the content of your report.
Ensure you have explained what the report will contain. 
Highlight and delete this message before submission
 
[Click here and insert your text for the Introduction]
 
Do Not Start the Report Body On This Page
(Loss of 4 marks)!
 
 代写 MATH 1053 - Quantitative Methods for Business
 
Report Body
 
Highlight and delete this question text before submission
Use the questions below to guide your report-style discussion of the main results of your analyses in Appendices 1-4. 
Do not include numerical calculations or spreadsheets – Place these in the Appendices.
Do quote quantitative results.
Do include graphs where requested.

(10 Marks) Appendix 1 Financing options for restaurant renovations
1.     (2 Marks) Summarise the aim of this section.
2.     (8 Marks) Discussion of the results from Appendix 1.
Discussion Guidelines for Appendix 1:  the points listed below should be discussed in your report body to help you earn maximum marks.  You are welcome to enhance your discussion with tables and/or graphs, and using bullet points to report main points is also acceptable, providing you discuss any relevant points you wish to make.  Clearly presented information will help to earn maximum presentation marks.
Discussion points:
Describe the key features of the loan offered by the local bank and Credit Union, with or without the interest-only period:
What is the monthly repayment?
What is the total amount paid?
What is the total interest paid?
Which option should Emma choose? Why? Explain briefly.
 (6 Marks) Appendix 2 ‘Simple credit’ to finance the proposed Chef’s table
1.     (2 Marks) Summarise the aim of this section.
2.     (4 Marks) Discussion of the results from Appendix 2.
Discussion Guidelines for Appendix 2:  the points listed below should be discussed in your report body to help you earn maximum marks.  You are welcome to enhance your discussion with tables and/or graphs, and using bullet points to report main points is also acceptable (providing you discuss any relevant points you wish to make).  Clearly presented information will help to earn maximum presentation marks.
Continued on next page …
 
Discussion points:
Use your results from Appendix 2 to describe the key features of the short-term loan offered by the moneylender.
You have done some research which indicates that a bank would be willing to lend Emma the same amount of money for one year at 17.9% per year compounded monthly.
Is this ‘simple credit on simple terms’ credit union loan a good alternative to borrowing the amount required for the Chef’s table from the bank? Explain briefly. No additional calculations are necessary.
(6 Marks) Appendix 3 Choosing an internet plan
1.     (2 Marks) Summarise the aim of this section.
2.     (4 Marks) Discussion of the results from Appendix 3.
Discussion Guidelines for Appendix 3:  the points listed below should be discussed in your report body to help you earn maximum marks.  You are welcome to enhance your discussion as you like, and using bullet points to report main points is also acceptable (providing you discuss any relevant points you wish to make).  Clearly presented information will help to earn maximum presentation marks.
Discussion points:
Discuss the results of your analysis from Appendix 3.
Include and comment on your diagram.
At how many gigabytes (per month) is the cost of the two plans the same? When does a Pre-paid plan become preferable? Explain briefly.
(8 Marks) Appendix 4 Break Even Discussion Points
1.     (2 Marks) Summarise the aim of this section.
2.     (6 Marks) Discussion of the results from Appendix 4.
Discussion Guidelines for Appendix 4:  the points listed below should be discussed in your report body to help you earn maximum marks.  You are welcome to enhance your discussion as you like, and using bullet points to report main points is also acceptable (providing you discuss any relevant points you wish to make).  Clearly presented information will help to earn maximum presentation marks.
Discussion points:
Discuss the results of your break-even analysis from Appendix 4, including the break-even number of units and break-even revenue.
Include and comment on your break-even diagram.
Discuss the implications of introducing the Chef’s table. Would Emma be better or worse off? Explain briefly.
… end of report body …
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[Click here and insert your report-style discussion of Appendices 1-4]
 
Do Not Include the Report Body On This Page
(Loss of 4 marks)!
 
Conclusions and Recommendation
 
(5 marks)
Conclusion: Summarise the main findings of your report:  base this on your discussion.
Do not introduce new information in the conclusion. Do not use direct quotes.  Indicate whether the report fulfilled the purpose as stated in the introduction.
Recommendation: Base these on your conclusion.  Do not introduce new information in the recommendation.  Present options for resolving the issue (purpose) presented in the introduction. Be brief – use dot points.
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[Click here and insert the text for the Conclusion]
 
Appendix 1 - [Enter a suitable appendix name]
 
Highlight and delete the question text below before submission.
Include full details of your working out in this appendix.
 
Which are the better loan terms?
 
After obtaining a quote for renovations, Emma requires $75,000 to refurbish the family’s restaurant, which is to become the stylish and modern dining space she visualizes for her degustation – only restaurant. 
 
Emma is considering taking an 8-year loan for the required amount and has enquired at her local Bank and Credit Union regarding loan options.
 
The local Bank charges 6.75% per year compounded monthly and require monthly payments.
 
Use the Week 3 Amortisation EXCEL spreadsheet on the Lecture Notes page of the course website and adapt it for your needs to answer the following:
 
(a)    (2 marks) Use EXCEL to calculate the monthly repayments that Emma would have to make on this loan.
 
(b)   (8 marks) Use EXCEL to set up an Amortisation Schedule for the loan. Include your completed EXCEL amortisation schedule in Appendix 1.
 
For full marks, show the calculations for i and n in adjacent cells (you can type these).  Label each item in column A, rows 1-5 with your initials and label each Amortisation column (Payment Number, Opening Balance,…, Closing Balance) with your initials.
 
Hint: Use formulae to compute the repayment size and to populate each value in the amortisation schedule (i.e. columns Opening Balance through to Closing Balance), otherwise the repayments will not balance to 0.
 
(c)   (2 marks) Use your amortisation schedule from part (b) to calculate the total interest and the total amount paid over the life of the loan. Show your calculations for this amount using an appropriate Excel formula.
 
(d)   (2 marks)  Use EXCEL to produce a graph showing the repayments from (a) over time.  In the graph, each repayment should be split into two parts indicating how much of the repayment will go towards interest and how much will go towards paying off the principal.   Include a copy of your EXCEL graph in Appendix 1.
EXCEL Instructions: for full marks, make sure that your graph has been labelled appropriately (title, axis labels, legend) and that your chart title includes your network ID. The vertical axis should be set to a maximum height corresponding to the repayment size rounded up to the nearest $10.00 and the minimum value of the vertical axis should be 0.
Refer to Topic 3 in the green EXCEL Booklet for further instructions on graphing in EXCEL.
 
The Credit Union charges the same interest as the Bank, 6.75% per year compounded monthly and requires monthly payments. The Credit Union has also offered Emma a one-year interest-only option with her eight-year loan.  This means that for the first year, every month Emma would pay only interest on the amount borrowed. Loan repayments consisting of both interest and principal would then commence in year two and continue until the end of the 8-year term. 
 
(e)    (2 marks) Use EXCEL to calculate the monthly repayment that Emma would have to make starting in year two, assuming 7-year amortisation.
 
(f)     (8 marks) Use EXCEL to set up an Amortisation Schedule for the loan with the one-year interest-only option. Include your completed amortisation schedule in Appendix 1.
EXCEL Instructions: Start with the amortisation schedule from part (b) and modify it appropriately to account for the interest-only period. Be sure to add your initials to all column names. Use formulas, do not simply type in values!
 
(g)   (2 marks) Use your amortisation schedule from part (f) to calculate the total interest and the total amount paid on the loan with the one-year interest-only option.
 
TOTAL 26 MARKS
Please provide the requested non-Quantitative analyses in the report body.
 
Highlight and delete the above question text before submission
 
Appendix 2 - [Enter a suitable appendix name]
 
Highlight and delete the question text below before submission.
Include full details of your working out in this appendix.

	Restaurant Floor Plan

 
 
 
 

Kitchen

     
Is ‘simple credit’ a good option to finance the proposed Chef’s table?
 
After looking over the initial architect drawings for the restaurant renovations Emma realized that there was an unused store room next to the kitchen that could be converted to allow for a Chef’s table.  
 
A Chef’s table is is an elegant and private space that overlooks the restaurant’s kitchen. This offers guests an exclusive in-kitchen dining experience of exactly what’s happening in the kitchen and guests can enjoy direct contact with the head Chef. 
 
Emma believes this would be another marketing gem for her rebranded business --- to give her guests a truly memorable dining experience!
 
To finance the Chef’s table, an additional $8,000 is needed to convert the store room to a private dining space overlooking the kitchen.
 
A local moneylender is advertising ‘simple credit on simple terms’ short-term personal loans for up to $10,000 and you can apply online. Under the terms of the current promotion, the moneylender charges a fee of $7.50 per month for every $500 borrowed, without any additional fees to be paid. The monthly repayments are determined as follows:
 
Suppose that Emma borrows the amount she needs to refurbish the store room from the moneylender for one year on the currently advertised terms. Use Excel to calculate the APR (interest rate per year compounded monthly) implied by the terms offered by the moneylender. You will need to first calculate and then set the present value of monthly repayments to $8,000. 
 
EXCEL Instructions:
Prepare an EXCEL spreadsheet like the one shown below (only figures are shown others, you will have to work out the rest). Make sure that your column names include your initials.
 
Now use GoalSeek (Data à Data Tools à What-if Analysis in EXCEL 2007, EXCEL 2010 and EXCEL 2013 or Tools à GoalSeek in EXCEL 2003) to find the APR implied in the moneylending loan terms:

Include a screenshot copy of your before and after spreadsheet in Appendix 2.
TOTAL 9 MARKS
Please provide the requested non-quantitative analysis in the report body.
Highlight and delete the above question text before submission

Appendix 3 - [Enter a suitable appendix name]
 
Highlight and delete the question text below before submission.
Include full details of your working out in this appendix.
 
Which is the better broadband internet plan for Emma’s business?
Another decision facing Emma is to select a suitable internet plan for her business. Emma plans to use Social Media to promote the re-branded restaurant, sourcing local produce from around South Australia, online purchasing of ingredients and running a dynamic website for her business including online bookings! She is considering two options. 
 
The Pre-paid data plan costs $69.90 per month plus an additional $99 set-up fee. If Emma uses more than 160 gigabytes (GB) per month, she will be charged 50 cents per extra 1 GB over the 160 GB limit.
The Broadband Contract costs $49.90 per month with no activation fee. However, Emma will be charged $1.25 per 1 GB for any data usage above the 100 GB monthly allocation.  
 
At how many gigabytes per month is the cost of the two options the same?
 
Answer this question algebraically and illustrate it using an EXCEL graph. Include a copy of your EXCEL graph in Appendix 3. On your graph, identify the region corresponding to the prepaid plan being preferred and the region corresponding to the contract plan being preferred over a one month period.
 
EXCEL Instructions: Create a column called Data Usage and in that column enter values from 0 to 400 in increments of 20. Then create two more columns, one for Pre-paid Plan and another for Contract. Enter appropriate formulae in EXCEL to obtain the cost of each plan corresponding to each value in the Data Usage column. Highlight the resulting three sets of numbers and go to Insert à Charts àScatter to obtain a graph. Make sure that your graph has been labelled appropriately (i.e. title, axis labels, legend) and that your chart title includes your network ID. Refer to Topic 3 in the EXCEL Booklet for further instructions on entering formulae and graphing in EXCEL.
TOTAL 10 MARKS
 
Please provide the requested non-quantitative analysis in the report body.
 
Highlight and delete the above question text before submission

Appendix 4 - [Enter a suitable appendix name]
 
Highlight and delete the question text before submission.
Include full details of your working out in this appendix.
 
Will Emma’s degustation–only restaurant Break Even?
 
 
An important component of your report will be to demonstrate how many customers are required each fortnight in order to break-even on costs associated with running the business.
 
Emma estimates her fixed costs to be around $17,000 for the fortnight, including wages for the kitchen and service staff, insurance and utilities. 
 
Variable costs, including all local produce for the degustation menu and matching wines, are expected at $65 per person. The price for the dinner degustation menu has been set at $150 per dining guest.
 
 
(a)    (9 marks) What is the break-even number of dining customers (excluding the Chef’s table) per fortnight? What is the corresponding break-even revenue per fortnight? Find the break-even point using appropriate formulas and then illustrate it using an EXCEL graph. In Appendix 4, present appropriate calculations plus a copy of your EXCEL graph. In addition, indicate on your graph the region corresponding to profits and the region corresponding to losses.
 
EXCEL Instructions to produce a break-even graph: Create a column called Number of dining customers and in that column enter values from 0 to 350 in increments of 25. Then create two more columns, one for Total Cost and another for Total Revenue. Enter appropriate formulae in EXCEL to obtain the total cost and total revenue corresponding to each value in the Number of units column. Highlight the resulting three sets of numbers and go to Insert à Charts àScatter to obtain a graph. Make sure that your graph has been labelled appropriately (i.e. title, axis labels, legend) and that your chart title includes your network ID. Refer to Topic 3 in the EXCEL Booklet for further instructions on entering formulae and graphing in EXCEL.
 
(b)   (6 marks) For guests dining at the Chef’s table, there is an additional charge of $80 per person for the exclusive in-kitchen dining experience and premium menu. The additional variable costs for the Chef’s table menu are estimated at $30 per guest. If 15% of customers are expected to dine at the Chef’s table, what is the new break-even number of dining customers per fortnight? In Appendix 4, present appropriate calculations to justify your answer. Type them in Work or use EXCEL. A new break-even graph is not required.
 
 
TOTAL 15 MARKS
 
Please provide the requested non-quantitative analysis in the report body.
 Highlight and delete the above question text before submission

代写 MATH 1053 - Quantitative Methods for Business