For each question, please answer and show your calculations.It may work best to use Excel to compute your numbers and show your audit trail. For any narrative questions, please use the "word wrap" function in a cell and extend the column at the top to your desired length.

Neely's Skates ("Neely's") sells various types of skates to the Olympic training teams. The four skates Neely's sells are: Hockey Skate Racing Skate Figure Skate Bandy Skate Mr. Neely, the President/CEO has been busy building the business with the Olympic training teams aspiring to be the supplier for the 2022 Winter Olympics. He has done this while also overseeing production of the skates to meet the demand. As a result, Mr. Neely has not really paid attention to how the business is performing. He asked his friend Ray, a Bentley MBA student, to help him figure out how his business was performing. Ray received the following metrics on the Neely's Skates and its financial performance estimates for 2020: Hockey Racing Per Unit Details Figure Skate Skate Skate Bandy Skate Selling Price 250 $ 350 $ 250 $ 200 Variable Cost 193 259 213 160 Hockey Racing Total Fixed Costs - Year 2020 Figure Skate Skate Skate Bandy Skate Fixed Costs - Directly Tied to Product S 100,000 $ 1,800,000 $ 525,000 $ 350,000 Fixed Costs - Commonly Allocated $ 1,000,000 $ 2,100,000 $ 350,000 $ 150,000 Hockey Racing Figure Skate Skate Skate Bandy Skate Total # of Units Sold Estimated - 2020 50,000 60,000 35,000 0,000 155,000 Hockey Racing Figure Skate Skate Skate Bandy Skate Total of Manufacturing Capacity 30% 30% 15% 10% 85% Please assist your fellow Falcon Ray in creating metrics for Mr. Neely as well as any recommendations. Show all computations in Excel. 1. Prepare a forecasted year 2020 Contribution Margin Income Statement down to the Operating Income level (in dollars) for each product line and in total. From this, for each product, compute: 1. Contribution Margin Percentage 2. Operating Income Margin Percentage to Sales 3. Breakeven point (in units) 4. Margin of Safety (in units)5. What are your initial recommendations at this point from a quantitative perspective? Would you keep all product lines or drop any product lines? 2. Based on the product line Contribution Margin Income Statement you created in Question #1, consider with Ray, the following special orders that Mr. Neely received from the Canadian Figure Skating Team and the Canadian Hockey team to fulfill in year 2020: Figure Skating Team Hockey Team # of Skates 30,000 25,000 Sales Price/Skate S 200 300 Additional Variable Cost/Unit for Canadian Flag on Each Pair of Skates $ 2 $ 2 The factors to take into mind are as follows: You can only accept an order in full - you cannot take part orders of both. The existing Contribution Margin Income Statement from Question #1 will stay as stands for the time being. Based on the above: a. Perform an incremental analysis of each order option. b. Should Mr. Neely accept both, one or none of the orders? Which one(s) should he accept and which one(s) should he reject? 3. Going back to Neely's Contribution Margin Income Statement you created in Question #1 (NOTE: Do not include any considerations from Question #2), suppose Mr. Neely thought the following: . The Bandy Skate product line was not that popular and he was considering dropping it from the product offering If Neely's removed the Bandy Skate, the other product lines will need to absorb the common fixed costs based on their relative percentage of sales to the total remaining company sales dollars. However, if the Bandy Skate was removed, there would be an increase in sales (as well as variable costs) for the Hockey Skate of 1%. a. Perform an incremental analysis of the impact of dropping the Bandy Skate product line Do a revised Contribution Margin Income Statement without the Bandy Skate product line and adjustments to the other product lines as a result. C. Based on this analysis (compared to the initial Contribution Margin Income Statement in Question #1), what do you recommend? Provide any summary data or calculations from Question #1 and Question #3 to support