COCO LAMELA COMPANY Excel Assignment #3 The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a seventy-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on labor hours, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. You will also need to use Excel's RSQ function to determine what is the cast driver for those casts that are variable and/or mixed. These costs may be dependent on labor hours, unit sales, or distance shipped B. Once the cost driver is determined for each of the mixed or variable costs you will need to determine the cost elements using the Excel SLOPE and INTERCEPT functions. This can be included in same area you used for requirement "A". C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; total labor hours worked: 97,000 hours; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month Next, construct a Traditional Income Statement for the upcoming month Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. Regarding the selling price: this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount D. While the Coco lamela Company is based in the USA, and conducts business in dollars (USD), its two principle investors, Lewis & Levy, are based in England. To make the affairs of the company relatable to its investors Coco Lamela presents its financial information both in USD and British pounds (GBP). Copy and paste the conversion factor from http://www.xe.com/currencytables/ Use the Feb. 19,2020 close rate. Once you have pasted the factor into your spreadsheet use the ROUND function to limit the value to the fourth decimal place. Using the pro forma income statements that you constructed for requirement Cas your input, recreate those statements in British pounds (GBP) You must use Excel for this case. All non-input cells will either reference another cell or be a calculated (formula) cell Format all the cells as 'accounting and the initial sales amount on the income statements as a "currency. Any variable cost elements that you discover is to be displayed to three decimal places, and any fixed cost element is to be shown as a whole number The amounts in the income statements shall be displayed in whole numbers. The purpose of this case is to reinforce the concept of cost behavior, and to give you some Excel experience. Remember that readability and neatness count when you create your solution. Whether you use a single spreadsheet or multiple sheets is up to you. Define the area that will contain the input data that is given in items Cand D. Make this area obvious and easy to locate. Use named ranges in your data section for the cost drivers and various costs whenever possible. This assignment is worth twenty-five points. While others may give you verbal assistance, this must be your own work Make sure to disclose who you helped, who helped you, or that you solved this completely alone Month Activities: 1 2 3 4 5 6 7 8 9 10 11 12 Distance Shipped 425,000 420.000 450.000 375.000 510, 900 562,000 475.000 $80,000 784,000 Labor Hours 65,000 25.000 70.000 72.500 85.000 5 75.000 84 300 90.000 54000 62.000 98.000 34,000 58.000 55,000 29,000 33,000 35,000 59.000 56,000 50,000 Units Sold MONTHLY COSTS in USD 35,000 1 37,500 2 38,000 3 Cost of Goods 945,000 1,012, 500 1,025.000 913.000 1.566,000 1,485,000 783,000 891.000 972.000 1593.000 1.512,000 1.350.000 Advertising Expenses 154,850154500154 332 154080157380156.600153 430 154530 154 077 157.490 156,720 155859 Selling & Commissions 185,000 195.000 202.400 IM000 2 83.000 265.000 166.000 182.000 177.000 2.000.000 245.000 1.200,000 273,000 1384,000 257.000 2.176.000 Admin Expenses 1,450,000 1.450,000 570.000 570.000 1.516,760 2.890,000 1.692,000 1.315.300 1.374.500 1.500.000 1.560.000 250.000 Padaging Expenses 230,000 250.000 220.000 340,000 330,000 200.000 210.000 240.000 30000 350.000 Shipping Expenses 450,000 425 000 445.000 370.000 $5,000 $12.000 567 900 190.000 4 77 500 981450 790.010 358.000 COCO LAMELA COMPANY Excel Assignment #3 The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a seventy-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on labor hours, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. You will also need to use Excel's RSQ function to determine what is the cast driver for those casts that are variable and/or mixed. These costs may be dependent on labor hours, unit sales, or distance shipped B. Once the cost driver is determined for each of the mixed or variable costs you will need to determine the cost elements using the Excel SLOPE and INTERCEPT functions. This can be included in same area you used for requirement "A". C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; total labor hours worked: 97,000 hours; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month Next, construct a Traditional Income Statement for the upcoming month Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. Regarding the selling price: this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount D. While the Coco lamela Company is based in the USA, and conducts business in dollars (USD), its two principle investors, Lewis & Levy, are based in England. To make the affairs of the company relatable to its investors Coco Lamela presents its financial information both in USD and British pounds (GBP). Copy and paste the conversion factor from http://www.xe.com/currencytables/ Use the Feb. 19,2020 close rate. Once you have pasted the factor into your spreadsheet use the ROUND function to limit the value to the fourth decimal place. Using the pro forma income statements that you constructed for requirement Cas your input, recreate those statements in British pounds (GBP) You must use Excel for this case. All non-input cells will either reference another cell or be a calculated (formula) cell Format all the cells as 'accounting and the initial sales amount on the income statements as a "currency. Any variable cost elements that you discover is to be displayed to three decimal places, and any fixed cost element is to be shown as a whole number The amounts in the income statements shall be displayed in whole numbers. The purpose of this case is to reinforce the concept of cost behavior, and to give you some Excel experience. Remember that readability and neatness count when you create your solution. Whether you use a single spreadsheet or multiple sheets is up to you. Define the area that will contain the input data that is given in items Cand D. Make this area obvious and easy to locate. Use named ranges in your data section for the cost drivers and various costs whenever possible. This assignment is worth twenty-five points. While others may give you verbal assistance, this must be your own work Make sure to disclose who you helped, who helped you, or that you solved this completely alone Month Activities: 1 2 3 4 5 6 7 8 9 10 11 12 Distance Shipped 425,000 420.000 450.000 375.000 510, 900 562,000 475.000 $80,000 784,000 Labor Hours 65,000 25.000 70.000 72.500 85.000 5 75.000 84 300 90.000 54000 62.000 98.000 34,000 58.000 55,000 29,000 33,000 35,000 59.000 56,000 50,000 Units Sold MONTHLY COSTS in USD 35,000 1 37,500 2 38,000 3 Cost of Goods 945,000 1,012, 500 1,025.000 913.000 1.566,000 1,485,000 783,000 891.000 972.000 1593.000 1.512,000 1.350.000 Advertising Expenses 154,850154500154 332 154080157380156.600153 430 154530 154 077 157.490 156,720 155859 Selling & Commissions 185,000 195.000 202.400 IM000 2 83.000 265.000 166.000 182.000 177.000 2.000.000 245.000 1.200,000 273,000 1384,000 257.000 2.176.000 Admin Expenses 1,450,000 1.450,000 570.000 570.000 1.516,760 2.890,000 1.692,000 1.315.300 1.374.500 1.500.000 1.560.000 250.000 Padaging Expenses 230,000 250.000 220.000 340,000 330,000 200.000 210.000 240.000 30000 350.000 Shipping Expenses 450,000 425 000 445.000 370.000 $5,000 $12.000 567 900 190.000 4 77 500 981450 790.010 358.000