Download the Applying Excel form below. Follow the tutorial on the first tab and then complete the questions using Excel tools and formulas on the second tab. Use the Goal Seek function in Excel to solve for the missing value for March Units Sold in the Income Statement. After running the Goal Seek function, verify that the amounts match the example below for the first two requirements. Total number of units to sell in March Total number of units to sell in March after price increase 2,313 1,850 4 Check your worksheet setup and formulas by changing the variable expense per unit to $0.75 in cells C14, D14, and E14 in the Data area, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the operating income for the entire quarter should be $16,266. Note: If you rounded up the units sold for March to the nearest whole unit, the operating income will be $16.268 due to rounding If you did not get these answers, reset the Variable expense per unit back to $100 and redo the Goal Seek function. Be sure that you are referencing cell F22 es the "Set cell" for the targeted operating income of $15,000. The last two requirements can be calculated using the PMT formula and other basic Excel functions. Your monthly payment in Requirement C should be $534 57 and the new monthly payment in Requirement D should be $450.17 C D E G H Goal Seek - Student Paper Only Corp. has a compensation plan for its sales reps where if they meet a targeted operating income level for the quarter they receive a 10% bonus based on the net operating income goal! Jim just received his sales information from January and February. He needs to determine the total sales he must make in March in order to receive a bonus. Use Goal Seek to help Jim determine the total sales he needs to make in March to reach the targeted income level for the first quarter. Targeted operating income for the quart $ 15,000 Income Statement Units Sold January 1,500 February March Quarter Totals 1,250 Price per unit Variable expense per unit $ 55 $ 5.00 $ 5.00 $ 5.00 0.75 $ 0.75 $ 0.75 Sales 6 7,500 $ 6,250 $ - $ 13,750 Operating expenses: Variable expenses 1,125 938 2,063 Fixed expenses 1,750 1,750 1,750 5,250 Total expenses $ 2,875 $ 2,688 $ 1,750 $ 7,313 Operating income $ 4,625 $ 3,563 $ (1,750) $ 6,438 H 27 a. Using Goal Seek in Excel, determine the total number of units that Jim needs to sell in March in order to meet his targeted operating income for the quarter. 28 29 30 Total number of units to sell in March 81 ? b. If the company increases its price per unit by $1.00 in March, what is the minimum number of units that Jim needs to sell in order to meet his targeted operating income for the quarter? Use Goal Seek to find your answer. 3 4 5 Total number of units to sell in March after price increa ? c. Assume that Jim met his target net operating income of $15,000 and will now receive a $1,500 bonus. Jim plans to use his bonus as a down payment on a car. Using the PMT function, determine the monthly payment for his new car loan. Cost of car 555 30,000 1,500 Down payment Loan amount $ 28,500 Term (in months) Interest Rate (annual) 60 4.75% Monthly Payment d. Jim decides to wait to buy his car until he has a larger down payment. He wants to determine what his monthly payment would be if he earned a full year of quarterly bonuses. Assuming Jim received the same quarterly bonus for all four quarters based on the net operating income goals described above, determine the following. his new car loan. Cost of car $ 30,000 Down payment $ 1,500 Loan amount 28,500 Term (in months) 60 Interest Rate (annual) 4.75% Monthly Payment ? D G H d. Jim decides to wait to buy his car until he has a larger down payment. He wants to determine what his monthly payment would be if he earned a full year of quarterly bonuses. Assuming Jim received the same quarterly bonus for all four quarters based on the net operating income goals described above, determine the following: (Hint: You can either use Goal Seek or the PMT function to calculate the new monthly payment.) Total bonus amount earned in one year ? New loan amount ? New monthly payment