A Budget Template for XL-1000 Support Costs Jack Holt is a support manager for McKenzie Dynamics,…

A Budget Template for XL-1000 Support Costs

Jack Holt is a support manager for McKenzie Dynamics, a local software company that has a new product (XL-1000) it expects to release for sale in about four months. Jack has begun to rough out some expense estimates for the support team that will be handling the increased volume of problem incidents that are expected with any new software release. He has given you a sample of the format he uses to prepare a product support budget, as shown in Figure 7-5.

A Budget Template for XL-1000 Support Costs Jack Holt is a support manager for McKenzie Dynamics, a...-1

While Jack works on position descriptions and recruiting for the support staff, he would like your help to develop a spreadsheet template for the complete support budget. Use the budget expense categories described in Figure 7-2 and the format shown in Figure 7-5 to design a spreadsheet Jack can use to prepare a product support budget plan for presentation to McKenzie Dynamics’s management team. Your task is to develop a spreadsheet template for Jack using the following guidelines:

·         Use appropriate budget expense categories from Figure 7-2 in the chapter. The cost of support will be included in the price of the software, so you don’t need to include income in your template. Also, don’t worry if you include expense categories Jack doesn’t need because they can be deleted and others can be added later as needed.

·         You do not have to include details such as actual quantities and dollar amounts in your budget spreadsheet (unless you wish to do so to test it). Jack will input the actual data later. However, you should include all the headings and the formulas needed to calculate the annual cost of each category and category subtotals.

·         Jack uses the following codes in the ECL code column: E for ongoing operating expenses, C for one-time capital equipment expenses, and L for monthly or annual lease costs.

·         Design your budget plan spreadsheet so it is in a format that can be presented to the management team at McKenzie Dynamics.

·         A Budget Template for XL-1000 Support Costs Jack Holt is a support manager for McKenzie Dynamics, a...-2

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