2. It’s party time! Your boss has agreed to trial a cinema party promotion for next Tuesday evening. It must be successful for it to continue. That means you will need to make a profit. To get started open the Cinema Party Budget spreadsheet in Excel. Where you see it means that you need to answer a question in your Cinema Budget activity booklet. (blue text in brackets like this will tell you the question number)
3. Format cells The cells in the spreadsheet need formatting. Format cells B9, B10, B14, B15, B16 and B17 to category Currency with 2 decimal places and the £ symbol. Tip: If you hold the Ctrl button down on your keyboard you can format all of these cells in one go. Just hold down the button and select each cell with the mouse. Right click the mouse and select Format Cells.
4. Fill in the missing formulae As you can see the value of the total income and total cost cell is blank. Add the number 10 to cell B8. To calculate the total income you will need to multiply the number of tickets sold with the ticket price. In cell B10 add the formula =B8*B9 (answer Q1 in activity booklet) Add up the total cost in cell B17. (answer Q2 in activity booklet) Tip Remember: you need to use a SUM formula to add up cells.
5. Add a profit label to the model By looking at the model you can probably tell whether a profit or loss is currently being made because the total cost is greater than the income. But it doesn’t tell you the exact figure. Businesses always need to know the exact profit or loss. Label row 19 with Profit and highlight with a colour. When determining the profit you will need to subtract the total cost away from the total income. In cell B19 enter the formulae =B10-B17 (answer Q3 in activity booklet)
6. Negative numbers At the moment the profit for the Cinema Party budget is -£585.00. This is a negative number and is in fact a loss. Losses are bad for business and therefore they should stand out in a spreadsheet model. Format cell B19 to display a negative number in red with a minus symbol. Tip Select cell B19 and right-click the mouse button. Select format cells. In the negative numbers area choose a red number with a minus symbol. Click OK.
7. Use the model to answer questions The public were asked about preferred days and who would come. Responses were as follows: If you hold the party on Monday, 113 will attend. If you hold the party on Tuesday, 79 will attend. If you hold the party on Wednesday, 142 will attend. For each day, change the number of tickets sold (in cell B8) (answer Q4 in your activity booklet)
8. Add additional rules and variables The cinema party cannot go ahead unless there are workers. You will need workers to serve food, drinks and sweets. Your boss has told you that there must be one worker for every 20 customers. If there are 15 customers one worker is still required and if there are 21 customers two workers will be required. Each worker will be paid £24. What are the three extra pieces of information that you will need to include in your model? (write you answer for Q5 in your activity booklet)
9. Add additional rules and variables You now have three extra pieces of information to add to your model: the number of workers required (this variable will change according to the number of customers). the cost of paying each worker. the total cost of paying all of the workers. Why do you need to include the cost of paying each worker in your spreadsheet model if you will include the cost of paying all of the workers? (write your answer for Q6 in the activity booklet). Tip Consider how you have calculated the total income using the number of tickets and ticket price variables.
10. Insert the new information into your model Click on row 6 and insert four extra rows to store and calculate the extra information. Label cell A7 Information, make it bold and underline it. Label cell A8 Number of workers. Label cell A9 Cost per worker. The total cost of workers will need to go in the Costs section because it is the result of a calculation to work out how much workers will cost. Insert a new row between row 20 and 21 to retain formatting and label Total cost of workers. (a rule and output variable)
11. Calculate number of workers First you must work out how many workers you will need. You must have one worker for every 20 customers. As this is determined by the number of customers we can use a clever formula to update this automatically. Divide the number of tickets sold by 20 and round up. Input the formula in cell B8. (answer Q7 in your activity booklet) Tip The / sign is used to show division in a spreadsheet formula.
12. Calculate the cost of workers Now that you know how many workers you will need the total cost of workers can also be calculated. The cost for each worker is £24. Enter it into your model and format the cell to Currency with 2 decimal places. Now you will need to calculate the total cost for the workers in cell B21. Have a go at this for yourself . (answer Q8 in the activity booklet) Update the total cost formula to include the total cost of workers. Save your work as cinemapartybudget.xlsx in you user area.
