14-63. I have an excel sheet I need help with. Could you help me with it. I know this one is last minute, but just wanted to check to see if you could help me. I need an excel sheet with formulas, but also need it all formulas embedded in a word document. This is what was posted for this portion.

*Submit in a Word document with each item numbered. Excel spreadsheets with relevant calculations should be embedded within the document.*

Alberta Gauge Company, Ltd., a small manufacturing company in Calgary, Alberta, manufactures three types of electrical gauges used in a variety of machinery. For many years the company has been profitable and has operated at capacity. However, in the last two years, prices on all gauges were reduced and selling expenses increased to meet competition and keep the plant operating at capacity. Second-quarter results for the current year, which follow, typify recent experience. ALBERTA GAUGE COMPANY, LTD. Income Statement Second Quarter (in thousands) Q-Gauge Sales .................................................................................. Cost of goods sold .............................................................. Gross margin ...................................................................... Selling and administrative expenses ..................................... Income before taxes ............................................................ E-Gauge R-Gauge 1,600 900 900 1048 770 950 552 130 -50 370 185 135 182 ($55) -185 Alice Carlo, the company's president, is concerned about the results of the pricing, selling, and production prices. After reviewing the second-quarter results, she asked her management staff to consider the following three suggestions: Discontinue the R-gauge line immediately. R-gauges would not be returned to the product line unless the problems with the gauge can be identified and resolved. Increase quarterly sales promotion by $100,000 on the Q-gauge product line in order to increase sales volume by 15 percent. Cut production on the E-gauge line by 50 percent, and cut the traceable advertising and promotion for this line to $20,000 each quarter. Jason Sperry, the controller, suggested a more careful study of the financial relationships to determine the possible effects on the company's operating results of the president's proposed course of action. The president agreed and assigned JoAnn Brower, the assistant controller, to prepare an analysis. Brower has gathered the following information. All three gauges are manufactured with common equipment and facilities. The selling and administrative expense is allocated to the three gauge lines based on average sales Q-Guage........................... E-Guage............................ R-Guage........................... Quartler Advertising & Promotion 210,000 100,000 40,000 The unit manufacturing costs for the three products are as follows: Q-Guage Direct Material.................. Direct Labor....................... Variable Manufacturing Overhead........... Fixed Manufacturing Overhead................ Total................................... E-Guage R-Guage $31 $17 $50 40 20 60 45 30 60 15 10 20 131 77 190 The unit sales prices for the three products are as follows: Q-Guage.................. E-Guage.................. R-Guage................. $200 90 180 The company is manufacturing at capacity and is selling all the gauges it produces. 1. JoAnn Brower says that Alberta Gauge Company's product-line income statement for the second quarter is not suitable for analyzing proposals and making decisions such as the ones suggested by Alice Carlo. Write a memo to Alberta Gauge's president that addresses the following points. a. Explain why the product-line income statement as presented is not suitable for analysis and decision making. b. Describe an alternative income-statement format that would be more suitable for analysis and decision making, and explain why it is better. 2. Use the operating data presented for Alberta Gauge Company and assume that the president's proposed course of action had been implemented at the beginning of the second quarter. Then evaluate the president's proposal by specifically responding to the following points. a. Are each of the three suggestions cost-effective? Support your discussion with an analysis that shows the net impact on income before taxes for each of the three suggestions. b. Was the president correct in proposing that the R-gauge line be eliminated? Explain your answer. been profitable econd-quarter Total 3,400 2,768 632 690 -58 e an analysis. Shipping Expenses $10 per unit 4 per unit 10 per unit