B C D E 43 Requirement 8 Use the information provided, the high low method and the contribution margin approach to prepare a contribution format income statement for 2024 (you only have two levels of activity, 44 2023 and 2024) 45 Use your mixed cost formulas to create your contribution format statement. Reference the DATA cell(s) as provided to complete your statement below. Format as numbers. 46 Round to 2 decimal places where appropriate 47 48 Boyd Corporation 49 Income Statement 1,761,786 50 For the Year 2023 1,560,000 51 Sales Revenue $ 2,394,000 201,786 52 Cost of Goods Sold 1,560,000 53 Gross Profit 834,000 54 Selling and Administrative Expenses 597,000 55 Operating Income 237,000 56 57 Boyd sold 420 units in 2023 620 58 Boyd sold 620 units in 2024 420Boyd sold 420 units in 2023 620 E: Boyd sold 620 units in 2024 Q 200 High Low Method Cost of Goods Sold Step 1 Variable cost per unit 1 006.93 3 1,008.93 620 1,761,786 Step 2 - Fixed Cost 1,136,250 X 620 625 535.71 625,535.71 1,136,250.00 1 Step 3 Mixed Cost Formula C=F+1006.93*Q (STATE the ACTUAL formula in the blue box provided) F+V'620=1,102,000 (1) (1) substract from (2) Selling & Administrative Costs F+V'420=597,000 (2) a Step 1 Variable cost per unit 5,050.00 V'100=505,000 Step 2 - Fixed Cost 1,369,214 V25,050 Step 3 Mixed Cost Formula C=F+5050*Q F+5,050*620=1,761,766 (STATE the ACTUAL formula in the blue box provided) F+3,131,000 : 1,761,786 F=1,369,214 E Boyd Corporation 66 Step 3 - Mixed Cost Formula C=F+1008.93*Q 67 (STATE the ACTUAL formula in the blue box provided) 89 F+V*620=1, 102,000 (1) (1) substract from (2) 69 Selling & Administrative Costs F+V*420=597,000 (2) 70 Step 1 - Variable cost per unit 5,050.00 71 V*100=505,000 72 Step 2 - Fixed Cost 1,369,214 V=5,050 73 74 Step 3 - Mixed Cost Formula C=F+5050*Q F+5,050*620=1,761,786 75 (STATE the ACTUAL formula in the blue box provided) F+3, 131,000 = 1,761,786 76 F=1,369,214 77 Boyd Corporation 78 Contribution Format 79 For the Month Ending December 31 80 81 Sales Revenue $ 2,394,000 82 Variable Costs: 2,746,536 83 Contribution Margin 352,536 84 Fixed Cost 2,505,464 85 Operating Profit $ 2,152,928 86Comprehensive Project 1 v1 2 DATA (copy from Requirement 8) 3 Description 4 Unit Sales for 2024 $ 620 Per Unit 5 Sales Revenue $ 2,394,000 $ 3,861 6 Variable Costs 3,756,536 6,059 7 Contribution Margin 1,362,536 2,198 8 Fixed Costs 2,505,464 9 Operating Income $ 1,142,928 10 11 Breakeven 12 Target Profit 670,000 13 14 Your answers must be supported with calculations and formulas. No credit will be given for simply placing numbers in the answer blocks. 15 16 Requirement 9 17 Use the contribution margin approach to compute the company's annual breakeven in units. 18 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 19 20 Breakeven in Units 2,505,769 COGM, COGS, Inc St, Cont Solut Contribarg Approach Solution + Ar21 22 Requirement 10 23 Use the contribution margin ratio approach to compute the breakeven point in sales dollars. 24 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 25 Format the ratio as a percent, breakeven in dollars as accounting number format in whole dollars. 26 27 Contribution margin ratio 57% 28 Breakeven in Dollars 3,682,666 29 30 Requirement 11 Use the contribution margin approach to compute the annual sales level (in units) required to earn a target operating income 31 (profit) of $670,000. 32 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 33 Use the Excel ROUNDUP function to obtain whole units if applicable 34 35 Target sales level (in units) 3,682,667 36 37 Requirement 12 Use the contribution margin approach to compute the annual increase in net operating income if sales increase by 1 38 unit. 39 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data.36 37 Requirement 12 Use the contribution margin approach to compute the annual increase in net operating income if sales increase by 1 38 unit. 39 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 40 Use the Excel ROUNDUP function to obtain whole units if applicable 41 42 New Operating Income 1,142,929 43 change in Operating Income 2,198 44 45 Requirement 13 Use the contribution margin approach to compute the change in net operating income if the selling price increases by 46 2%, variable costs increase by 5% and because of these decisions sales fall by 95 units. 47 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 48 Use the Excel ROUNDUP function to obtain whole units if applicable 49 50 New Operating Income 208,776 51 change in Operating Income 52 53 Requirement 14 Use the contribution margin approach to compute the change in net operating income if the selling price per unit44 45 Requirement 13 Use the contribution margin approach to compute the change in net operating income if the selling price increases by 46 2%, variable costs increase by 5% and because of these decisions sales fall by 95 units. 47 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 48 Use the Excel ROUNDUP function to obtain whole units if applicable 49 50 New Operating Income 208,776 51 change in Operating Income 52 53 Requirement 14 Use the contribution margin approach to compute the change in net operating income if the selling price per unit 54 increases by $25 per unit and because of this decision sales volume decreases by 55 units. 55 Reference the DATA cell(s) in your formula below. Format as number. 56 Use the Excel ROUNDUP function to obtain whole units if applicable 57 58 New Operating Income 59 change in Operating Income 60 Is increasing the selling price a good idea? 6162 Requirement 15 Use the contribution margin approach to compute the change in net operating income if the sales increase by 6% 63 and advertising spending is increased by $6,000. 64 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 65 Use the Excel ROUNDUP function to obtain whole units if applicable 66 67 New Operating Income 68 change in Operating Income 69 Is increasing advertising spending a good idea? 70 71 Requirement 16 72 Use the contribution margin approach to calculate margin of safety in dollars, as a percent and in units. 73 Reference the DATA cell(s) in your formula below. Format as a number. Always refer to the original data. 74 Use the Excel ROUNDUP function to obtain whole units if applicable 75 76 Margin Safety units 521.00 77 Margin Safety $ 2,011,732 78 Margin Safety % 84% 79