Be sure to include cell references in all of your formulas, so that changes to the input fields will update your answers.

Sales $12,000 Use your worksheet to answer the following questions: Variable costs: If sales increase by 10% : Cost of goods sold Variable selling Variable administrative What is the percentage increase in variable costs? What is the percentage increase in the contribution margin? What is the percentage increase in fixed costs? Fixed costs: Fixed selling Fixed administartive $4,0001,000 What is the new net operating income? What is the percentage increase in net operating income? Contribution Margin Income Statement If sales decrease by 10% : \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} Sales revenue What is the percentage decrease in variable costs? Less: variable costs What is the percentage decrease in the contribution margin? Cost of goods sold Variable selling Variable admisitrative Total variable costs Contribution margin What is the percentage decrease in fixed costs? What is the new net operating income? Breakeven is the level of sales that results in a net operating income of zero? Use Excel's Goal Seek function to calculate the breakeven Fixed costs level of sales. Fixed selling Fixed administartive Goal Seek Video: Net operating Income http://youtu.be/hPN8MLmB8d