1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 1 Chapter 1: Applying Excel 2 3 3 Data 4 Sales $ 78,000 $ 5 Variable costs 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative $ S 39,000 3,900 3,700 1000 S $ 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 40.810 (b) What is the net operating income now? (b) What is the net operating income now? Net operating income $ 27.000 (c) What is the contribution margin now? Contribution margin $ 31,000 2. Suppose that sales are 7% higher as shown below: A Chapter 1: Applying Excel B 1 2 S 83 460 3 Data 4 Sales 5 Variable costs 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fbced costs 10 Fixed selling 11 Fixed administrative $ $ ATA 41.730 4.173 3.959 $ $ 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 40,810 (b) What is the net operating income now? Not operating income 28,860 (c) What is the contribution margin now? Contribution margin S 32.860 Ro2 (c) When sales increase by 7%, which of the following should also increase by 7% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect) Variable cont Book Fred cost 2 Gross margin Pint 2 Contribution margin ferences 2 Net operating income le) When soles increase by 7%, which of the following should increase by more than in a merchandising company? [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect.) Variable.com 2 Fed cost 2 Gross margin 2 Contribution margin Net operating Income