Week 9 – PrecisionTree

 

 

 

PrecisionTree and the Prescott Furniture Company

 

Instructions:

 

Using Palisades PrecisionTree software create a tree that graphically shows the various options open to customers of the Prescott Furniture Company[2].  You must import your PrecisionTree into a Word document that contains the NSU/SBE front page.  Be sure to explain what you did to solve this problem, and explain what a decision tree is and what the solution is for each of the various branches.  There is a maximum of 5 points available for this mini report assignment.

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The Problem

 

Walt (Hutch) Woods is the owner and main furniture maker at the Prescott Furniture Company (located just behind the old K-Mart on route 52) in Prescott Florida.  The company has been in business for over 15 years producing some of the finest examples of curio cabinets available in the Southeast US.  Hutch makes two sizes of cabinets; the regular size is about 10 inches smaller in width than the large size cabinet seen on the right.

 

The company uses only three types of woods, Miami Dade Pine, pecan, and red cherry to make their cabinets.  The Miami Dade Pine is only finished in natural wood, but the pecan and red cherry woods can be finished in either a matte finish or a glossy finish which both cost the same.

 

Walt (Little Hutch) Woods

 

Walt’s son, Little Hutch, is a senior at Prescott High School where he has been taking as many business courses and wood working classes as he can.  Because he is planning on graduating at the end of this semester, his dad hopes that he will continue his studies at PC[3] and work part-time at his furniture shop.  In order to help Little Hutch out he has asked you to create a decision-tree that explains the various options open to customers.  Over the past years Walt has been keeping track of the preferences that his customers make when ordering a cabinet, and he has provided you with a table that shows the percentages and costs of each item for you to use in your decision tree.


 

 

Your task

 

You are to take this information and beginning with a purchase/don’t purchase decision node create a PrecisionTree that shows Little Hutch the possible options open to the customer, and find the final ending price for each option.

 

NOTE: You must also include the state of Florida sales tax and Prescott County sales tax cost.  Together they total 7.50% of the total sale.  You may have to calculate this by hand in your decision tree.

 

The Furniture Options

 

The following are the options open to customers of the company.  Prepare a PrecisionTree graphically showing these options, percentages and costs.  Import this tree into a Word document and explain your answers in the Word document.

 

Prescott Furniture Company – Cabinet Options Chart

 

Type of Wood

 

Finish - Natural

 

Finish - Matte

 

Finish Glossy

% of people selecting this option

Cost of Cabinet with this option[4]

Miami Dade Pine

 

 

 

 

 

Small Cabinet

X

 

 

8%

$4,000

Large Cabinet

X

 

 

14%

$5,500

Pecan

 

 

 

 

 

Small Cabinet

 

X

X

17%

$3,500

Large Cabinet

 

X

X

20%

$3,750

Cherry Wood

 

 

 

 

 

Small Cabinet

 

X

X

20%

$2,500

Large Cabinet

 

X

X

21%

$2,900

 

Be sure to also include the following table in your finished work project.

 

·        Assume that Walt will have 150 customers in the coming year, and that each one will order one of the above cabinets in the same percentage indicated, how much is his expected income (gross) and how much will he pay in state and local sales taxes?

 

               Estimated Income

 

Type of Wood

Estimated Income

Estimated Sales Tax

Total Income

Miami Dade Pine

 

 

 

Pecan

 

 

 

Cherry Wood

 

 

 

 

This concludes the final course assignment.



[1] NOTE: Dr. Rokicki, while he may use the same general format from term to term, always makes changes to the assignment.  This, this assignment is significantly different from any prior term’s work.

[2] No other software is acceptable for this extra credit or for the case study for this week.

[3] PC = Prescott College.

[4] Customer costs before Florida and Prescott sales taxes.

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    • The Prescott Furniture Company
      
      Instructions:
      
      Using Palisades Precision Tree software create a tree that graphically shows the various options open to customers of the Prescott Furniture Company …