77 Sales 78 Variable Costs 79Direct materials 80 Direct Labor 81 | Variable 82 Sales commissions 83 Shipping 84 Variable billing 85 Total Variable Costs 86 Contribution Margin 87 Fixed Costs 88Fixed MOHH 89 Advertising 90 Sales and admn. salaries 91Fixed billing 92Total Fixed Costs 93 Net Operating Income (Loss) 94 95 96 Requirment 4: 97 Calculate Baron's current breakeven point in 98 99 Units: 100 101 102 103 104 Dollars: 105 106 107 108 109 Requirement 5: 110 111 Multiply the lowest digit (other than zero) from the last four digits of your student ID number by 10,000 and 112 enter for C. below to get the reduction in advertising. 113 Hint: Divide total cost column by total units to get VC per unit. Hint: Operating Income (Loss) must equal the original income (loss) from above. nits and Show work in this area: ANSWER Units Dollars 14 ]a. The vice president suggests that se rice be lowered by 10% and advertising be reduced by 115 She is confident that this action!will increaselales volume by 25%. 45 Year 2017 2016 2015 2014 2013 Sales in Units Billing Costs 5,692 5,717 5,361 5,293 5,290 23,580$ 23,900$ 21,000$ 23,000$ 20,850$ 47Billing costs for the past 5 years, along with total units sold is presented 48 in the table to the right: 49 51 Use the high-low method to calculate the following: 52 Show your work in this area: ANSWER: 53 a. Variable billing cost per unit 5717-5290/23900-20850- 0.14 56 b. Total fixed billing costs 59 c. Total cost equation for billing costs 60 61 d. Determine total billing costs for 2018 based on the cost equation in 2)c. above and the total number of units sold in 2018. 63 64 65 66 The company has been operating at a loss for several years. Management is trying to determine what it can do to 67 make next year profitable. 68 Insert your for 2)d. in the inement above in the blank provided for Billing (Unknown B) ---- 70 Redo Baron's 2018 income statement in contribution format, showing both a total column and a per unit column in the space provided below 71 You MUST use formulas and cell refereces in the income statement to earn full credit. 72 73 Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. Total Units Amount Per Unit 75 76 77 Sales 78 Variable Costs 79Direct materials 80 Direct Labor 81 | Variable 82 Sales commissions 83 Shipping Hint: Divide total cost column by total units to get VC per unit. 6 Enter the last 4 digits of your student ID number: 9196 (These digits will be used to for some variables in the project) 8 Save this file in EXCEL FORMAT as: P2Lastname 9 Round all dollar amounts to whole dollars, except for per unit amounts. Per unit amounts should be 10 rounded to the nearest cent. Percentages should be rounded as follows: 20.75% or .2075 11 Do not change rows or colums on this spreadsheet. Input areas are in yellow. 12 You MUST show your work in the areas indicated to get credit for the problem. 13 You MUST use formulas and cell refereces in the income statements in Requirements 3 and 5 to earn full credit. 14 15 Presented below is Baron Company's Income Statement prepared on the traditional (functional) basis Highest- Lowest other than 0 17Requirement 1: Replace the two unknown amounts (?) in A. and B. as directed. To find the unknown for B, you will have to complete Requirement 2. Then, complete the totals on the income statement. 20 Baron Company Income Statement For the Year Ended December 31, 2018 $364,000 Sales Cost of Goods Sold 24 25 26 27 28 Direct Materials (variable) Direct Labor (variable) Manufacturing Overhead (mixed) $70,200 39,000 64,000 173,200 190,800 Gross Margin Operating Expenses Commissions (variable) Shipping (variable) Advertising (fixed) Billing (mixed) Sales and Administrative Salaries (fixed) 29,120 9,000 A. Mult 90,000 above by 1,000 and enter here enter the result 32 the HIGHEST digit entered above B. Complete Requirement 2 below and insert result here 35 70,000 Total Operating Expenses 37 38 39 40 Selling price per unit is $14 and variable manufacturing overhead is $1 per unit. All variable expenses in the company vary in terms of units sold. 41 There was no change in inventory levels between the beginning and end of the year. Baron's plant capacity is 40,000 units per year (relevant rang 42 43 c. How many units of product did Baron sell in 2018? Net Operating Income (Loss)