Exercise 1

Based on the following production data and total costs of thirteen companies belonging
to the chemical sector (table 1):

Table 1: Production and total costs

No Firm Production (f.u.) Total Cost (m.u.)
1 ALQUIMIA SA 4.050.000 23.778.739
2 PROQUIMSA 4.524.750 24.942.857
3 U. V. E 1.901.250 12.994.021
4 CH. & FARMSPAIN 2.646.000 17.040.765
5 QUIMICASA 7.443.000 36.779.638
6 UNIQUIMICA 25.836.750 159.509.637
7 FERHISPANIA 17.707.500 85.611.185
8 AMONIOCA 11.542.500 44.648.130
9 FORCE-IBERICA 5.197.500 27.727.462
10 CHEMICAL HNOS. 10.496.250 44.468.580
11 PROD. AGROQUIMIA 11.385.000 43.320.580
12 QUÍMICAS IBERIA 22.167.000 127.792.929
13 UNIÓN QUÍMICA 8.820.225 41.936.580

It is requested:
1. Sort the data with respect to the production level in ascending order.

2. Calculate the unitary costs of each of the companies and the unitary cost of the
sector.

3. Obtain the company with the lowest unit cost and the company with the highest
unit cost. Calculate the deviation of existing unitary costs in the sector (USE
THE 'VLOOKUP', 'MIN' AND 'MAX' FUNCTIONS).

4. Calculate the benefit of each company, if the price at which the products were
offered follows the following rule: “If the unitary cost of the company is less
than the unitary cost of the sector, the price offered is the unitary cost of the
sector; otherwise, the offer price is its unitary cost".

5. Do the following graphs:

a. Production level of the companies (graphic of stacked areas with 3D

effect).
b. Total costs for companies based on production (column chart).
c. Unitary costs of the companies and the unitary cost of the sector with
respect to the level of production (X) (line graph).

6. Briefly explain the situation of the sector and the companies that compose it.
Which companies obtain benefits? What characterizes these companies? (Use
the graph in section 5.c to argue the answer).
Exercise 2

The JFK company supplies the demanded quantities shown in table 3 on a regular basis
to a customer. In order to optimize production, the following batch manufacturing
formula is used to obtain the optimum production volume (Q):

Q = D×k
D⎞
⎛
⎜ 1− ⎟× c
⎝ P ⎠

Where:
• D = Demand (units / month)
• Production capacity (P) = 116,500 (unit / month)
• Coefficient of launch cost (k) = 0.11
• Coefficient of possession cost (c) = 0.04

It is requested:

1. Calculate the volume of optimal production that the company must carry out
each month in order to meet the demand, knowing that the initial stock is 38,900
units and the warehouse in the period (t) is calculated as follows:

Warehouse (t) = Optimal production (t) + Warehouse (t-1) - Demand (t)

Check if the optimal production is sufficient to meet the demand in all periods.

2. Calculate the income, if we know that the sale price is € 27.25.

3. Calculate the production costs, if they are obtained according to the following
formula:

Production costs = Optimal production x Cost of raw materials x (1 + k) +

Warehouse stock x Cost of raw materials x c

Note that the cost of raw materials is € 12 / unit.

4. Determine transport costs knowing that their cost per unit varies depending on
the units transported according to the data in table 1.
 Table 1. Unitary costs
Transported units Cost per transported unit
65.000- 75.000 1,6 €
75.001- 85.000 1,25 €
85.001- or more 1,08 €

5. Evaluate the benefits that the company will obtain if it is the one that assumes the
transport costs and also makes the discounts for volume of purchase to its client,
detailed in table 2.

Table 1. Discounts for volume of purchase

Units sold Discount
60.000-70.000 3%
70.001- 80.000 6%
80.001- or more 10 %

6. Obtain the month with the lowest optimal production figure, by means of the functions
of 'VLOOKUP' AND 'MIN'.

7. Make a graphic of areas (stacked) where the production costs, discounts and
transportation are reflected, as well as the benefit of the company. To facilitate the
calculation of the first two sections, it is recommended to use the table 3.

Table 3. Resolution template I

Optimal
Month Demand Warehouse Income Production Costs
Production
December 38.900
January 81.500
February 85.575
March 89.855
April 85.360
May 81.092
June 77.037
July 73.187
August 69.527
September 66.050
October 69.352
November 72.820
December 76.462
To facilitate the calculation of the third and fourth sections, it is recommended to use table 4.

Table 4. Resolution template II

Production Transport
Month Demand Income Discount Benefit
Costs Costs
Exercise 3

A financial institution grants the loans to companies that request it based on whether they
comply with any of the following two parameters:

a) Ratio of capacity to repay loans, over 33% (it is assumed that with the generated cash
flow, the company can repay the loan in three years).

(𝑷𝒓𝒐𝒇𝒊𝒕𝒔 𝒐𝒇 𝒕𝒉𝒆 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒚𝒆𝒂𝒓 + 𝒂𝒎𝒐𝒓𝒕𝒊𝒛𝒂𝒕𝒊𝒐𝒏)

𝑹𝒂𝒕𝒊𝒐 𝒐𝒇 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 =
𝑵𝒆𝒘 𝒍𝒐𝒏𝒈𝒕𝒆𝒓𝒎 𝒅𝒆𝒃𝒕𝒔

Where:
The amortization of the period is 10% of the net assets.

b) The guarantee required by the bank to grant the loan is that 30% of the difference
between the net fixed assets and the new long-term debts (considering the new loan
request) is greater than the loan requested (to cover a possible insolvency).

If one of these two parameters are met, the loan is "granted", otherwise it is "rejected".
Table 1 shows the data extracted from the balance of the different companies.

Table 1. Information about the firms

Firms Net assets Long term debts Profits Requested loan

ALSA 3.540.000 1.610.000 470.000 380.000

CERSA 2.150.000 1.020.000 280.000 410.000
PENSA 1.580.000 680.000 180.000 220.000
DISSSA 4.120.000 1.890.000 320.000 590.000
SENYSA 3.650.000 1.810.000 260.000 520.000
LURSA 2.110.000 850.000 160.000 370.000
TERSA 1.980.000 980.000 210.000 260.000
FRESA 2.450.000 1.050.000 170.000 300.000
OTESA 3.210.000 1.250.000 290.000 550.000
PRESA 2.560.000 1.160.000 170.000 610.000

It is requested:

1. Identify which companies will be granted or reject the requested loan (use Excel's
conditional functions). To facilitate the calculations, it is recommended to use the design
of table 2.
 Table 2. Solution template

New Long-term Grant /Reject

Firms Loan Amount Ratio of Capacity Guarantee
debts.

2. Obtain the name of the company with the highest ratio of loan repayment capacity,
and the company with the highest guarantee (using the functions 'VLOOKUP' and
'MAX').
Exercise 4

A car dealer requires the following requirements as conditions for financing the sale of
automobiles:

a) In relation to the entry, when the client has a salary less than or equal to € 1,500 and
does not have a fixed contract, the total amount of the vehicle will be paid. In the other
cases, the payment will be made with down payment of 30% when the price of the vehicle
is less than or equal to € 20,000 and 20% in other cases.

b) Regarding the payment period, if the salary is less than or equal to the reference salary
(€ 1,500), and the person has a part-time job, the payment is made in cash. The rest of the
debt is amortized with updated monthly payments through a period of 24 or 48 months
depending on the characteristics of the type of contract and salary of the worker according
to the following condition: "For salaries greater than € 1,500 and with a vehicle price of
more than € 20,000, the payment is made in 48 months, in the rest of the cases the payment
will be in 24 months."

c) In relation to the loan fees, these are calculated by updating the value of the debt
(Vehicle price minus the down payment) according to the payment period, adopting the
following formula:

𝐷𝑒𝑏𝑡 𝑉𝑎𝑙𝑢𝑒×𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒

𝐿𝑜𝑎𝑛 𝐹𝑒𝑒 =
1 − 1 + 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 ^ −𝑚𝑜𝑛𝑡ℎ𝑠 𝑝𝑒𝑟𝑖𝑜𝑑 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡

Where:
Monthly interest rate = 0.50%

It is requested:

1. Identify which clients (see information in table 1) will be granted or disallowed

the financing, as well as the peculiarities (down payment, payment period and fee)
of that financing (use conditional Excel functions). To facilitate the calculations,
it is recommended to complete table 1.
 Table 1. Car dealer customers
Payment Down Period
Price of the
Customer Salary Contract method Payment (24/28 Fee (€)
vehicle (€)
(Loan/Cash) (€) Months)
Luís Gas 1.450 Full-time 22.000
José Martí 2.870 Part-time 24.000
Paco Roig 2.980 Part-time 18.500
Ana Mas 2.010 Full-time 17.000
Laura Gil 1.360 Full-time 14.500
Miguel Nos 1.410 Part-time 16.750
María Bou 2.420 Part-time 29.500
Rosa Perez 3.800 Part-time 35.600
Luís Caño 1.670 Full-time 21.800
Juan Gual 2.110 Full-time 27.400
Exercise 5 (HOME EXERCISE)

ASEGUR

Asegur is a company that is primarily engaged in contracting auto insurance. In order to

streamline the management, the cost of basic insurance and the different optional
complements (windshield and assistance, theft, fire and other risks) have been organized
according to the type of car, according to the following table:

Table 1. Insurance Characteristics

Type of car Sedan MiniVan Berlina Van Sport

Code U M B F D

Basic
300 400 500 550 700
insurance
Windshield
and 20 50 70 80 90
Assistance
Theft 40 50 75 100 100
Fire 60 80 100 110 120

Other Risks 300 400 500 550 700

In addition to this amount (basic insurance plus supplements), a percentage discount is
applied based on the years of seniority of the insured driver (years of license) and a
penalty according to the age of the client. This information is shown in Tables 2 and 3
below.
Table 2. Years of license
Seniority (Years of license) Discount
Less than 5 0 %
From 5 to 15 5 %
More than 15 10 %

Table 3. Age of the driver
Age Penalty
18 - 24 20 %
25 - 30 10 %
31 - 59 0 %
60 - 80 15 %

It is requested:
1. Based on these data, calculate the budget that Asegur would make its customers listed
in table 4. For the resolution of the exercise use the template in table 5.

Table 4. Customers details

Customer Luisa Aína Gual José Mir Pont Raúl Sos Ríos Mar Ruíz Mas
Years of license 5 18 3 32
Age 29 44 22 61
Type of car MiniVan Berlina Sport Sedan
Basic insurance YES YES YES YES
Windshield and YES YES YES YES
assistance
Theft YES YES No YES
Fire YES YES No YES
Other Risks No YES No YES

Table 5. Resolution template:

Luisa Aína Gual José Mir Pont Raúl Sos Ríos Mar Ruíz Mas

Code

Basic insurance

Windshield and
assistance
Theft

Fire

Other Risks

Total amount

Discounts

Penalty

Final Amount
Exercise 6

A tile company manufactures five different products whose commercial denominations

are Rome, Paris, Istanbul, Vienna and Athens. The manufacture is made from four basic
raw materials, namely red clay, white clay, enamel A and enamel B. The kg. of raw
material used per m2 of product are shown in table 1.

Table 1. Product composition

2 2 2
Red clay (Kg./m ) White Clay Enamel A (Kg./m ) Enamel B (Kg./m )
2
(Kg./m )
Rome 0 16 2,5 0,5
Paris 15 0 2 1
Istanbul 0 13 3 0,75
Vienna 12 2 1,6 0
Athens 0 12 3 1

Table 2 shows the stock of raw materials available in the company's warehouse, its cost
and the sale price of the products.

Table 2. Firm’s information

2
Stock (kg) Cost (€/kg) Sale price (€/m )
Red Clay: 900.000 Red clay: 0,25 Rome: 12,50
White Clay: 950.000 White Clay: 0,32 Paris: 10,75
Enamel A: 225.000 Enamel A: 1,54 Istanbul: 13,00
Enamel B: 100.000 Enamel B: 1,66 Vienna: 10,00
--- --- Athens: 13,25

It is requested:

1. Calculate the table of Total Consumption, which indicates the needs of materials of the
company to be able to carry out the production
Calculate the level of optimal production of each product, so that the benefit obtained is
maximum, without consuming more raw materials than those available in the warehouse
(use the tool 'Solver' Excel).
2. Maximize the benefit with the Solver tool, if the costs of raw materials have increased.
Table 3. New costs
Cost (€/kg)
Red Clay: 0,35
White Clay: 0,39
Enamel A: 1,74
Enamel B: 1,96

3. The sales department has obtained orders from customers for a certain number of m2
that will necessarily have to be served in the coming weeks (see table 3).
Based on the needs generated by the order, we have to calculate the table of total
consumption and the necessary purchases to place the order.
In the table of results, we must calculate the Total Income and the Total Costs of the
company to obtain the benefit.

Table 4. New orders

2
Orders (m )
Rome: 35.000
Paris: 15.000
Istanbul: 22.000
Vienna: 18.000
Athens: 40.000

4. Make a bar graph that shows the benefits obtained in the three previous sections.
Exercise 7

The company Mobiola, which is dedicated to the manufacture of chairs, has a line of
products of high-quality wood that goes to the American market. Its manufacture is
basically composed of six models: Comfort, Studio, Special, Extra, Real and Suprem.
The six models have been designed to use some standard components usable in all
products, which facilitates their manufacture and helps protect against unexpected
changes in demand. The components used for its manufacture are: A, B, C, D, E, F, G,
H, I, J, K. The availability in the warehouse of these components and their quantity
needed for the manufacture of each unit of the product is shown in table 1.

Table 1. Product composition and stock of raw materials

Comfort Studio Special Extra Real Suprem Stock
A 8 0 12 0 8 4 1280
B 4 12 0 12 4 8 1900
C 4 4 4 4 4 4 1090
D 1 0 0 0 1 1 190
E 0 1 1 1 0 0 170
F 6 0 4 0 5 0 1000
G 0 4 0 5 0 6 1000
H 1 0 0 0 0 0 110
I 0 1 0 0 0 0 72
J 0 0 1 1 0 0 93
K 0 0 0 0 1 1 85

The margin (price - cost) of the benefit of each one of the products is detailed in table 2.
Table 2. Margin of the different models of chairs
Comfort 29,50 €
Studio 31,80 €
Special 37,25 €
Extra 34,75 €
Real 32,00 €
Suprem 40,10 €
It is requested:

1. Calculate the maximum benefit that the company can obtain (use Excel's 'Solver' tool).
Calculate the remaining final stocks.

2. Calculate the maximum benefit that the company will obtain if:

a) Fabricates the same units of all models.

b) 100 units of the 'Comfort' model are manufactured and nothing of the 'Special' model.
c) 120 units of the 'Suprem' model and 50 units of the 'Real' model are manufactured.

3. Make a graph of columns with the benefits obtained in the three previous alternatives
for each chair model.
Exercise 8

Pizcueta Consultores is an investment company that manages the portfolios of several

clients. In the month of December, a customer requests to the company to manage an
investment portfolio of € 120,000. This client would like to invest in a portfolio composed
only of four types of shares listed on the IBEX 35. After conducting a stock market study,
Pizcueta Consultores decided to invest in the following shares: Telefónica continuous
market (TEF), Endesa continuous market (ELE), REPSOL continuous market (REP), and
Fomento de contrucciones y contratas (FCC).

To reduce the risk of the investment, a maximum amount of expenditure is set for each
type of action detailed in table 1. The purchase of all these shares takes place on January
4 of the current year and the sale took place yesterday. To find out the value in these dates
you can check, for example, the INVERTIA web portal and observe its historical quotes.

Table 1. Share portfolio

Shares TEF ELE REP FCC
Unitary purchase price
Expected profitability per share 6,50% 4,75% 4,50% 5,25%
Maximum cost in actions 45.000 € 32.000 € 36.000 € 28.000 €
Number of shares purchased
Number of shares purchased
Expected Benefit

It is requested:

1. Calculate the optimal composition of the portfolio to maximize the expected benefit if
the purchase cost cannot exceed € 120,000 (use Excel's 'Solver' tool). The expected profit
is obtained from the product between the purchase price, the number of shares and the
expected return.

2. Calculate the real benefit of the portfolio if the investor has bought and sold the shares
obtained in the previous section. Use table 2 as a resolution template.
3. Which company obtains the least expected benefit? Use the formulas of 'VLOOKUP'
AND 'MIN’

Table 2. Evolution of the stock portfolio

Shares Purchase price Sale price Number of shares Profit per Real profit
share
TEF
ELE
REP
FCC
Exercise 9

An NGO must provide a package of food per person and week in a refugee camp. This
food package must be made by combining the list of products shown in the following
table. For each of these products their nutritional characteristics are shown by box, can or
bag, as well as their price and weight in the following table.

Table 1. Products from which the food package can be formed

Proteins Carbohydrates Minerals Weight Prize
Products Fat (gr.) Calories(Kcal)
(gr.) (gr.) (mgr.) (kgr.) (euros)
Biscuit Box 15 250 30 450 0,1 0,5 0,6
Tuna Can 24 0 12 204 12 0,12 3,1
Peach can 9 10 0,5 100 0,5 0,4 2,4
Cereals bag 120 680 20 3380 0,6 1 1,6
Rice bag 30 400 38 1200 0,2 1 0,8
Milk powder bag 74 540 80 2180 1,4 1 2,9
Tapioca Bag 2 885 2 3560 1,9 1 1,1

The food package can be made by combining the 7 different products as desired. So, for
example, you could make the food package with only 1 bag of milk powder and 10 bags
of rice and nothing of the rest of the products. The only condition that is required is that
the food package covers the nutritional needs of a person for a week.

Table 2. Nutritional needs of a person during a day

Proteins Carbohydrates Calories Minerals

(gr.) (gr.) Fat (gr.) (Kcal ) (mgr.)
Daily needs per person 60 100 50 1680 3

It is requested:

1. Find the most economical product combination that meets the nutritional needs of
one person per week.
2. As the milk powder is vitaminized, it is desired to include at least one bag of milk
powder in the food package. Find the most economical product combination that
meets the needs of one person per week with this new condition.

3. In addition to the price of the products that make up the package, you want to take
into account the distribution costs. Taking into account that the cost of transport
to the refugee camp is 2 euros per kilogram, find the most economical food
package under the conditions of section 2) (include at least one bag of milk
powder).