Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell C18 enter the formula "= B6". 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 1-9. 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 1-9. If your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format income statement should now be $700 and the contribution margin should now be $4,700. 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 clicking "Browse. Next, click Save. You will use this worksheet to answer the questions in Part 2. Chapter 1: Applying Excel $12,000 Data Sales Variable costs: Cost of goods sold Variable selling Variable administrative Fixed costs: Fixed selling Fixed administrative $6,000 $600 $400 $2,500 $1,500 Enter a formula into each of the cells marked with a ? below Exhibit 1-9 ? ? ? Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling Administrative Net operating income ? ? ? ? ? Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Variable selling Variable administration Contribution margin Fixed expenses: Fixed selling Fixed administrative Net operating income ? ? ? ? ? ? ? ? ? 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: B $36,500 A 1 Chapter 1: Applying Excel 2 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs: 10 Fixed selling 11 Fixed administrative $16,500 $1,700 $1,500 $2,500 $1.500 If your formulas are correct, you should get the correct answers to the following questions. (a)What is the gross margin now? Gross margin (b)What is the net operating income now? Net operating income (c)What is the contribution margin now? Contribution margin 2. Suppose that sales are 21% higher than as shown in Question 1. $44,165 1 Chapter 1: Applying Excel 2 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs: 10 Fixed selling 11 Fixed administrative 12 $19,965 $2,057 $1,815 $2,500 $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 (b)What is the net operating income now? Net operating income (c)What is the contribution margin now? Contribution margin (d)When sales increase by 21%, which of the following should also increase by 21% in a merchandizing 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.) Variable cost Fixed cost Gross margin Contribution margin Net operating income (e)When sales increase by 21%, which of the following should increase by more than 21% in a merchandizing 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.) Variable cost Fixed cost Gross margin Contribution margin Net operating income