Siwa Company makes and sells a decorative ceramic statue. Each statue costs $50 to manufacture and sells for $75. Siwa spends $3 to ship the statue to customers and pays salespersons a $2 commission for each statue sold. The remaining annual expenses of operation are administrative salaries, $70,000; advertising, $20,000; and rent, $30,000. Siwa plans to sell 9,000 statues in the coming year. 

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Required

Construct a spreadsheet that shows a contribution margin format income statement and that calculates operating leverage. Place formulas in the spreadsheet to allow changes to any of the preceding information to be automatically reflected in the income statement and operating leverage. 

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A. Name: 1 Chapter 2 - Mastering Excel 2. 3 Contribution Margin Formnat Income Statement 5. ( 9,000 x $75) 9. Sales Revenue $675,000 Variable Expenses 7. ( 9,000 x $50 ) 8 Cost of Goods Sold $450,000 18,000 27,000 $ 2 ) ( 9,000 x 9. Sales Commissions ( 9,000 x $ 3) 10 Shipping Expenses Contribution Margin Fixed Expenses 495,000 $ 180,000 11 12 $ 70,000 20,000 30,000 13 Administrative Salaries 14 Adverlising 15 Rent 120,000 $ 60,000 16 Net Income 17 18 Operating Leverage 19 3.00 20