Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the variable costing approach vs. the absorption costing report. Here are some tips for using Excel: Cell Reference: Allows you to refer to data from another cell in the worksheet. If you entered "B5" into a blank cell, the formula would output the value from cell B5. Basic Math Functions: Allow you to use the basic math symbols to perform mathematical functions. You can use the following keys: +(plus sign to add),- (minus sign to subtract). (asterisk sign to multiply), and/ (forward slash to divide). For example, if you entered "B4+85 in a blank cell, the formula would add the values from those cells and output the result. SUM Function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges. If you entered SUM(C4,C5.C6)" into a blank cell, the formula would output the result of adding those three separate cells. Similarly, if you entered "SUM(C4:C6)", the formula would output the same result of adding those cells. 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 se A B D E 1 2 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows: 3 4 Selling price per fireplace $420 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials $135 8 Direct labor $43 9 Variable manufacturing overhead $37 10 Fixed manufacturing overhead per year $210,000 12 11 Selling and administrative expenses: Variable per unit sold $45 13 Fixed per year $190,000 14 15 Units in beginning inventory 16 Units produced during the year 17 Units sold during the year 18 19 Required: 20 Use the data to answer the following. 21 0 5,000 4,500 (Use cells A4 to B17 from the given information, as well as A26 to CS2 to complete this question. All answers should be input and 22 displayed as positive values.) 23 24 1. Assume the company uses variable costing: 25 26 Compute the unit product cost for one fireplace 27 24 1. Assume the company uses variable costing: 25 26 Compute the unit product cost for one fireplace 27 28 Prepare a contribution margin income statement for the year 29 30 Sales 31 Variable expenses: 32 Variable cost of goods sold 33 Variable selling and administrative expenses 34 Contribution margin 35 Fixed expenses: 36 Fixed manufacturing overhead 37 Fixed selling and administrative expenses 38 Net operating income 39 40 Compute the number of fireplaces required to break even 41 42 2. Assume the company uses absorption costing: 43 44 Compute the unit product cost for one fireplace 45 46 Prepare an income statement for the year 47 A D E F 47 48 Sales 49 Cost of goods sold 50 Gross margin 51 Selling and administrative expenses 52 Net operating income 53 54 Was fixed overhead deferred to or released from inventory? 55 Fixed overhead was: 56