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EXHIBIT 9.2 Contribution Income Statements for HFI's Proposed Gaming Table 2019 2020 Amount Percent Amount Percent Change Notes $180,000 100.00% $195,000 100.00% $15,000 Sales Variable
EXHIBIT 9.2 Contribution Income Statements for HFI's Proposed Gaming Table 2019 2020 Amount Percent Amount Percent Change Notes $180,000 100.00% $195,000 100.00% $15,000 Sales Variable costs 84.000 46.67 91,000 46.67 7.000 53.33% $104,000 53.33% $ 8,000 53.33% is the contribution margin ratio Total contribution margin $ 96,000 Fixed costs 60.000 Operating profit $ 36,000 60.000 0 $ 44,000 $ 8,000 $8,000 = 0.5333 x $15,000 EXHIBIT 9.6 What-If Sensitivity Analysis for HFI Inc. Using a Data Table Units Sold Variable Cost per Unit Fixed Costs Selling Price per Unit Operating Profit 1,500 $30 $60,000 $75 $ 7,500 1,500 35 60,000 75 1,500 40 60,000 75 -7,500 1,500 45 60,000 75 -15,000 Required: 1. Using the data from 2019 in Exhibit 9.1, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFL Inc., raging from a 20 percent decrease to 20 percent increase. Use Exhibits 9.2 and 9.6 as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2019 at a sales volume of 2,400 units.) (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567 = 15.67%).) DOL % 2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand. Operating profit EXHIBIT 9.2 Contribution Income Statements for HFI's Proposed Gaming Table 2019 2020 Amount Percent Amount Percent Change Notes $180,000 100.00% $195,000 100.00% $15,000 Sales Variable costs 84.000 46.67 91,000 46.67 7.000 53.33% $104,000 53.33% $ 8,000 53.33% is the contribution margin ratio Total contribution margin $ 96,000 Fixed costs 60.000 Operating profit $ 36,000 60.000 0 $ 44,000 $ 8,000 $8,000 = 0.5333 x $15,000 EXHIBIT 9.6 What-If Sensitivity Analysis for HFI Inc. Using a Data Table Units Sold Variable Cost per Unit Fixed Costs Selling Price per Unit Operating Profit 1,500 $30 $60,000 $75 $ 7,500 1,500 35 60,000 75 1,500 40 60,000 75 -7,500 1,500 45 60,000 75 -15,000 Required: 1. Using the data from 2019 in Exhibit 9.1, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFL Inc., raging from a 20 percent decrease to 20 percent increase. Use Exhibits 9.2 and 9.6 as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2019 at a sales volume of 2,400 units.) (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567 = 15.67%).) DOL % 2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand. Operating profit
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