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Chapter 1: Applying Excel: Excel Worksheet (Algo) (Part 1 of 2) Download the Applying Excel form and enter formulas in all cells that contain question

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Chapter 1: Applying Excel: Excel Worksheet (Algo) (Part 1 of 2) Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C18 enter the formula 36 After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1.7 Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1.7. it your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format incomo statement should now be $700 and the contribution margin should now be $4700, if you do not get these answers, find the errors in your worksheet and correct them Save your completed Applying Excel form to your computer and then upload it here by elleking "Browse." Next, click Save." You will use this worksheet to answer the questions in Part 2 A B D 1 Chapter 1: Applying Excel 2 3 Data 4 Sales $12,000 5 Variable costs: 6 Cost of goods sold $6,000 7 Variable selling $600 8 Variable administrative $400 9 Fixed costs: 10 Fixed selling $2,500 11 Fixed administrative $1,500 12 13. Entor a formula into each of the colls marked with a ? below 14 Exhibit 1-7 15 16 Traditional Format Income Statement 17 Sales $ 12,000 18 Cost of goods sold 6,000 19 Gross margin 6,000 20 Seling and administrative expenses: 21 Selling 3,100 22 Administrative 1,900 5.000 23 Not operating income $ 1.000 24 25 Contribution Format Income Statement 26 Sales S 12.000 27 Variable expenses: 28 Cost of goods sold 6.000 29 Variable selling 600 30 Variable administration 400 7,000 31 Contribution margin 5,000 32 Fixed expenses: 33 Fixed selling 2,500 34 Fixed administrative 1.500 4,000 35 Net operating income 1,000 36 37 33 $ s 1 Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 1 Chapter 1: Applying Excel 2 Data $ 68,000 S S 4 Sales S Variable costs: 6 Cost of goods sold 7 Variable selling B Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrativo 39,000 3,900 3,700 $ S 2,500 S 1,500 If your formulas are correct, you should get the correct answer todhodobrio guestions (a) What is the gross margin now? Gross margin s 38.500 (b) What is the net operating income now? Net operating income (c) What is the contribution margin now? Contribution margin of 2 2. Suppose that sales are 2% higher as shown below: B 1 A Chapter 1: Applying Excel 2 3 Data 4 Sales $ 69,360 Book 5 Variable costs: 6 $ 7 39,780 3,978 3,774 Print on on 8 Cost of goods sold Variable selling Variable administrative Fixed costs Fixed selling Fixed administrative 9 10 $ 2,500 Beforences 11 S 1,500 Enter this new data into your worksheet. Make sure you enter all of the new data - not just the sales. (a) What is the gross margin now? Gross margin Required information (6) What is the net operating income now? Net operating income (c) What is the contribution margin now? Contribution (a) When sales increase by 2%, which of the following should also increase by 2% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) Variable cost ? Foxed cost Gross margin Contribution margin Net operating income (c) When sales increase by 2%, which of the following should increase by more than 2% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

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