ba. Open a new worksheet, call it "yourlastnameStmts". Your income statement should show revenues, costs, and net operating income for each of the three product lines. Use the component product costs for each model directly from the pivot table (Requirement #5) in the cost of goods sold calculations. Check to see that the total product costs for the absorption costing method agree with the grand totals from the pivot table. Assume production stated in the Business Issue occurred and is equal to sales. 7 Prepare a projected income statement for 2020 (in good form) using the variable costing approach. 7a. Place this income statement right below the absorption costing statement. Also show revenues, costs, and net operating income for each of the three product lines. Using cost-volume-profit analysis, determine what total number of units must be sold in order to earn a company-wide profit of $450,000. Use excel to add a comment by your calculation to draw attention to this figure. When you have finished these two income statements, remove the gridlines so they are easier to read. 8 Prepare a memo to the owner. Choose five of the ten directed analysis questions below and write two or three substantive sentences to address each of those five questions. Conclude with a recommendation as to how many log cabins the owner should build in the coming year using the data from your analysis in the memo to support your recommendation. Use excel to insert a text box to write the memo in at the bottom of your solution worksheet/tab. Ba. Which cost estimation method did you use in requirement #5? Why? Would one method be preferable over others? Bb. What effect would outliers have on the utility cost estimation? If there are outliers in this data set, are you over- of under-estimating the utility cost? Be. Is it appropriate to estimate utility costs for all three models using this data set? Why or why not (besides potential outliers)? Bd. Why might the utility cost estimate be different between the high-low method (as in requirement #]) and the least squares regression method (as in requirement #4)? Be. What if production of cabins changes to 25 each of the basic, deluxe, and standard models? What will happen to overall net operating income for the company? if. If the company could manufacture all three product lines in one facility (instead of separate buildings, as is currently done), how would the cost estimation change? Be. Is the company on track to reach their target profit? Explain. 8h. How might the company's product mix affect their ability to reach their target profit? di. Is net operating income the same for financial statements prepared under the absorption and variable costing approaches? Why or why not? Bj. What advantages does the variable costing income statement offer over the absorption costing income statement in facilitating break-even analysis? Specifically use the numbers in your solution