as atta ACFI-350 MANAGERIAL ACCOUNTING EXCEL ASSIGNMENT stead. Professor C. Donchess Bear E A contribution format income statement for the most recent year Bear E for Big Bear Consumer Electronics Inc. is shown below. Total Department AM/FM radios HD radios excel b Sales $320,000 100% $270,000 100% $50.000 100% Less variable 236.000 74% 216.000 80% 20.000 40% excel be expenses Contribution 84,000 26% 54,000 20% 30,000 60% 185 Margin Less Traceable 15,000 5% 10,000 4% 5,000 10% Manage Fixed Expenses Segment Margin 69,000 22% $44.000 16% $25.000 50% Less Common 40.000 13% bject) Fixed Expenses SLA 12 Net Operating $29.000 9% Income bject) SLA 7 10 PROBLEM BACKGROUND: bject) Shortly after graduating with a business degree from Bridgewater State University, you are hired as an assistant to the District Manager of a national consumer electronics chain. SLA 21 During your first day on the job, you attend a meeting regarding product lines carried by the chain. You learn about a fairly new innovation called HD (high definition) radio. bject) This product allows consumers to listen to not only traditional AM and FM bands, but SLA 1 10 also to the newly created HD frequencies that most local radio stations are broadcasting free of charge to listeners on adjacent frequencies that previously were unused. Unlike satellite radio, this service requires no subscription charges. Consumers who have heard test HD radio tell you that AM-HD broadcasts sound like FM and FM-HD broadcasts sound like CD quality! bushel Due to improved manufacturing technologies, the cost to manufacture HD radios has dropped dramatically. MaplewoPROBLEM: Your boss (the District Manager) has authorized you to spend $10,001] for advertising for one of your chain's local stores, promoting one of their product lines. A Marketing Research class at Bdgewater State University conducted a study indicating that the additional advertising would increase sales of the AMJ'FM radios by $50,000 and increase sales ofthe HD radio: by only $45,000. The local store manager (who never took a course in Managerial Accounting) argues that the advertising budget should be spent on the AMIFM radios because it will result in more sales dollars. The store manager also argues that tlte AMfl-'M radio line's total sales are sulostantially higher than the HI) line, therefore as the biggest selling item, it should receive all advertising allotments. REQUIRED: YOUARE TO WORK INDEPENDENTLY 3] Using Excel, prepare new segmented income statements (including lhe new sales and cost data} based upon your recommendation. (hint: on what line would the \"0,000 of dedicated advertising appear?} You should submit 3 segmented income statements. The first being the original data on front ot'this page, the second, assuming the advertising is spent on AMIFM and the third assuming the advertising is spent on HD radios. b) Determine which product line (MM radios or HD radios) you will spend the 510.000 ol'adverlising on. Show your work. justifying this decision. based upon a coslfbcnctit analysis. What would you tell the store manager? Include a short memo to your boss [the District Manager) explaining your decision. c] What fonn of media would you recommend using to advertise your chosen product h'ne'i' {explain why} d] Are there any \"implicit\" considerations that should enter the decision on which product line to promote? In order to receive credit, hand in your solution on PAPER with your exam. You are working iadqreuderrrty on this project