Assignment File

Assignment 2: E-Commerce and software tools

Due date: Weighting: 10 July 2013 25% of the total marks for this course

Before starting this assignment, you must have completed the following topics: Unit 3 and 4

Part A: The Internet and e-commerce (50%)

The case study of Unit 4 is centred on HK Toys, a SME in toy trader in Hong Kong. HK Toys has been mainly involved in trading toys manufactured in China to Europe, USA, and Japan for over 20 years. Initially, HK Toys is planning to expand its business in retail toys business in Hong Kong locally. If successful, the management would expand its e-tail business to the world in a couple of months. Unit 4 has introduced a number of Internet technologies. Explain your answer with examples on how the following contemporary Internet technologies can help HK Toys in improving its business with customers and internal operations (pros), while at the same time, what problems (cons) could such technologies possibly bring upon to HK Toys: a b c d e Electronic mail Internet phone (Voice over IP) Social networking platforms (such as FaceBook) Media sharing platforms (e.g., YouTube) Online marketplaces (e.g. Alibaba or eBay)

As Unit 4 and this question do not contain all the detailed background information of the company, you should state reasonable assumptions about the business operations and commercial environment of HK Toys when explaining your justifications. You may also wish to consult Wikipedia and search for other information to enrich your answers. However, your answers should contain concrete examples with respect to the case of HK Toys in order to show yours understandings and application skill. Provide your answers in a MS word file with file name s********a2-1.docx, where ******** is your 8-digit student number. Your answers should not exceed five pages in length.

BIS B123 Business Computing Applications

Part B: Break-even analysis (50%)

Task 1 (25%) As a business manager in HK Toys, you are required to develop a breakeven analysis model to investigate the relationship between a products expenses (costs), its volume (units sold) and the operating income (gross profit). The following data are given:
A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 B C

Revenue

HK Toys Quarterly Income Statement

Units Sold Price per Unit Total Revenue Administrative Leasing Marketing Salary and Benefits Total Fixed Expenses Material Cost per Unit Total Material Cost Manufacturing Cost per Unit Total Manufacturing Cost Total Variable Expenses Total Expenses Operating Income 650,000 $32.50

Fixed Expenses

$2,250,000 1,550,000 1,750,000 2,875,000

Variable Expenses

$5.75 $12.50

Summary

Instructions: Use MS Excel to enter the following given data according to the cell references. Complete the worksheet with the following formulas: Total Revenue = Units Sold Price per Unit Total Fixed Expenses = SUM(C8:C11) Total Material Cost = Units Sold Material Cost per Unit Total Manufacturing Cost = Units Sold Manufacturing Cost per Unit Total Variable Cost = Total Material Cost + Total Manufacturing Cost Total Expenses = Total Fixed Expenses + Total Variable Expenses Operating Income = Total Revenue - Total Expenses

Format the headers, adjust the column widths, and add necessary borders in the range A1:C21.

Assignment File

Task 2 (10%) Use Excels Data Table to show the revenue, expenses, and income for units sold between 550,000 and 700,000 in increments of 10,000. Enter the following data in your worksheet according to the cell references.
E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Units 550,000 560,000 570,000 580,000 590,000 600,000 610,000 620,000 630,000 640,000 650,000 660,000 670,000 680,000 690,000 700,000 F G H

Revenue

Break-Even Analysis
Expenses

Income

Instructions: 1 2 3 4 5 Enter formulas =C6 in cell F4, =C20 in cell G4 and = C21 in cell H4. Generate a series in Column E from 550,000 to 700,000 in increments of 10,000. Use Excel to generate a one-input data table. Format the headers, adjust the column widths, and add necessary borders in the range E1:H20. Change the setting of your worksheet so that it could show the formulas and functions used in each cell. Name the worksheet as HK Toys in red color tab. Print out a copy of your formulated worksheet.

BIS B123 Business Computing Applications

Task 3 (10%) Use Excels graph to draw the following diagram, which shows the relationship between units sold, revenue and expenses, using the range E5:G20. Your results should be similar to the one listed below.

Instructions: 1 2 3 4 Set units sold data as X-axis labels, set the minimum display units in Y-axis to 15,000,000. Add two labels (Expenses and Revenue) to show the lines. Format, print and store it in a separate worksheet. Name the worksheet as Break-even Chart in green colour tab.

Assignment File

Task 4 (5%) From the Chart in Task 3 and the worksheet in Task 2, you can estimate that the break-even point (units sold) is between 590,000 and 600,000. Use the Excels Goal Seek function to compute the exact figure (with 8 decimal places) of units sold by which the operating income equals ZERO. Instructions: 1 2 3 4 Copy the range A1:C21 and paste it into a separate workbook. Name it as Break-even with a yellow tab. Use Goal Seek to compute the exact number of units sold at breakeven point. Format and print your worksheet. Save your worksheet as s********a2-2.xlsx, where ******** is your 8-digit student number.

You should submit

1 If you choose to submit your assignment through the ordinary mailing, you have to submit both the print outs and softcopies required from Part A and Part B (Tasks 1, 2, 3, and 4), together with A stamped addressed Assignment Acknowledgement Card and a TMA form. The print-outs are: 2 A word document from Part A, with no more than 5 pages in length. A worksheet print-out from Tasks 1 and 2 of Part B which clearly shows all the formula and functions used. A chart from Task 3 of Part B. A worksheet print-out from Task 4 of Part B.

If you choose to submit your assignment through the OLE (electronically), only the soft copies of the data files are required. And you are strongly to submit your assignment in this electronic method.

Note
1 You may use any spreadsheet software package to complete this assignment as long as you can accomplish all the tasks specified above. You are required to send your tutor the soft copy of your work on a CD-ROM. The print-out listed above should be sufficient.

BIS B123 Business Computing Applications

3 4

Write down your name and student number on the first page of your print out. You may find that the spreadsheet that shows all the formulas and functions used looks messy, or that it cannot be printed on one sheet. You will not be penalized in terms of presentation for this spreadsheet as long as all the formulas and functions are shown clearly and in their entirety. The layouts of the spreadsheet and the chart should be well presented. They must also contain all the relevant headings (properly aligned without spelling errors). The figures in the spreadsheet should be properly formatted. Marks will be awarded where you demonstrate the use of appropriate formulas and built-in functions, and the use of absolute cell references where appropriate. Students who do not use the proper formulas and functions will not receive full marks even if they have the correct result.