Question

Create three scenarios based only on a variation in part-time hours. The number given is the expected hours needed for next year. The actual hours are expected to vary between 85% and 120% of the projected hours. Create three scenarios that show the effect on a Min, Avg. or Max usage of hours on the Total PT Wage Expense. Create and name the scenarios (in this order) as Min Hours, Avg Hours, and Max Hours.

Create three new scenarios for the same three levels of hours usage but with a 3.5% increase in the wage rate. Create and name these three scenarios (in this order) as Min Hours w/Raises, Avg Hours w/Raises, and Max Hours w/Raises.
Create three new scenarios with the same three levels of hours but a 3% increase in wage ratew (rounded) and a Benefit % of 35%. Create and name these three scenarios (in this order) Min Hours w/Raises&Benefits, Avg Hours w/Raises & Benefits, and Max Hours w/Raises&Benefits. Ensure that the Avg Hours scenario is shown.
Display the results of the nine scenarios by creating a scenario summary.
Label the rows (in B6:B8 respectively) as Part Time Hours, Part Time Wage, and Part Time Benefits. The expense row (in B10) needs to be named PT Wage Expense. Delete the existing values in C6:C8 and C10.

Answer 1

Three scenarios based on a variation in part-time hours are created and the effect on the Total PT Wage Expense is calculated.

Step-by-step explanation:

To create the three scenarios based on a variation in part-time hours, we need to calculate the actual hours using the given range of 85% to 120% of the projected hours. Let's assume the projected hours are 100. The minimum hours scenario will be 85% of 100, which is 85 hours. The average hours scenario will be the projected hours, which is 100 hours. The maximum hours scenario will be 120% of 100, which is 120 hours.

To calculate the Total PT Wage Expense for each scenario, we need to multiply the part-time hours by the wage rate. Let's assume the wage rate is $10 per hour. The Total PT Wage Expense for the minimum hours scenario will be 85 hours multiplied by $10, which is $850. The Total PT Wage Expense for the average hours scenario will be 100 hours multiplied by $10, which is $1000. The Total PT Wage Expense for the maximum hours scenario will be 120 hours multiplied by $10, which is $1200.