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Use the following hints to calculate the cost of advertising for each sales campaign.
·         Begin by extending the logical design of the IPO chart which you developed at credit level to include th

Use the following hints to calculate the cost of advertising for each sales campaign.
·         Begin by extending the logical design of the IPO chart which you developed at credit level to include the calculations to calculate the cost of advertising.
·         Include extra input sheets as needed.  (Note: A spreadsheet containing the key input parameters for an advertising campaign has been provided –Advertising Costs.xls)
§         Create another processing sheet (or sheets) to build the calculations for the advertising cost.
§         Paste Link the car registration, the category of car, and the sales price into that processing sheet.
§         Think about the formula you then should use to find out which type of advertising campaign to use, how often the car is to be advertised in each paper each week, how many weeks the advertising campaign is to run, and the additional one-off costs for the magazine advertisement and the web-site.
§         Set up all the components of the Advertising Cost, and so determine the Total Advertising Cost for each car.
Note: To check if you are carrying this calculation out correctly, for a car allocated to a “commercial” car category, to be sold for $27,990, the total advertising cost should come out to be $1125.
·         Create a report/output sheet to show the cost of advertising each car that you have determined. 
·         Create another processing sheet which calculates the updated profit for each car category - this time also taking into account the cost of advertising.  (NB:  By creating a second processing sheet, rather than simply extending the credit level sheet it will clearly highlight the effect of advertising costs on the profitability of each car category)
·         Create a report/output sheet to show this updated determination of the profit for each car category. On this report/output sheet include a chart or charts showing this ‘Updated Profit for each Category of Car’ and showing the effect that including the advertising costs has had.
SPREADSHEET TASKS – High Distinction LevelHigh Distinction tasks involve:
§           Developing an “Insurance premium calculator”;
§           Making all the spreadsheet models more robust (see below);
§           Thinking about Slick Jim’s business situation, and suggesting and demonstrating the use of at least two further features of the Excel spreadsheet.
§           Creating a website for Slick Jim’s business
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