1 Chapter 2: Applying Excel 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative 12 13 Enter a formula into each of the cells marked with a ? below 14 Exhibit 2-9 15 16 Traditional Format Income Statement 17 Sales 18 Cost of goods sold 19 Gross margin 20 Selling and administrative expenses $12,000 $6,000 $600 $400 $2,500 $1,500 S 12,000 6,000 6,000 21| Selling 22 Administrative 23 Net operating income 04 24 25 Contribution Format Income Statement 26 Sales 27 Variable expenses 28 Cost of goods sold 29 Variable selling 30 Variable administration 31 Contribution margin 32 Fixed expenses 33 Fixed selling 34 Fixed administrative 35 Net operating income 1. change all of the dollar amounts in the data area of your worksheet so that it looks like this: Now 1 Chapter 2: Applying Excel 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs: 10Fixed selling 11 Fixed administrative 12 $88,500 $31.500 $3,200 $3,000 $2,500 $1,500 If your formulas are correct, you should get the correct answers to the following questions (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net operating income (c) What is the contribution margin now? Contribution margin 2. Suppose that sales are 23% higher than the data provided in requirement 1. 1 Chapter 2: Applying Excel 2 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative 12 $81,795 $38,745 $3,936 $3,690 $2,500 $1,500 Enter this new data into your worksheet. Make sure you enter all of the new data-not just the sales (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net operating income (c) What is the contribution margin now? Contribution margian