(a) What is the gross margin now?

(b) What is the net operating income now?

(c) What is the contribution margin now?

2. Suppose that sales are 23% higher as shown below:

(a) What is the gross margin now?

(b) What is the net operating income now?

(c) What is the contribution margin now?

(d) When sales increase by 23%, which of the following should also increase by 23% 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 as incorrect.)

check all that apply 1

• Variable costunanswered
• Fixed costunanswered
• Gross marginunanswered
• Contribution marginunanswered
• Net operating incomeunanswered

(e) When sales increase by 23%, which of the following should increase by more than 23% 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 as incorrect.)

check all that apply 2

• Variable costunanswered
• Fixed costunanswered
• Gross marginunanswered
• Contribution marginunanswered
• Net operating income

A B 1 Chapter 1: Applying Excel 2 3 Data $ 85,000 4 5 6 7 8 $ $ Sales Variable costs: Cost of goods sold Variable selling Variable administrative Fixed costs: Fixed selling Fixed administrative 64,000 6,400 6,200 69 9 10 $ 2.500 11 EA 1,500 A B 1 Chapter 1: Applying Excel N $ 104,550 4 5 $ 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 $ 78,720 7.872 7,626 8 $ $ $ 2,500 1,500