Grader Instructions Project Description: BT6e E6-38a v2 Accounting 2019 Project BT6e E6.38A Steps to Perform: Points Step Instructions Possible 1 Prepare Five Macaws' contribution margin income statement for last year. (Always use cell references and formulas where appropriate to receive full credit. If you copy/ paste from the Instructions tab you will be marked wrong.) 10 a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. b. Follow the format shown in Exhibit 6-22. Total Points 10 Cost Behavior Prepare a contribution margin income statement Five Macaws is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: Five Macaws Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue Less: Cost of goods sold Gross profit Less operating expenses: Selling and marketing expenses $ 990,000 673,000 $ 317,000 $ 65,500 Website maintenance expenses Other operating expenses Operating income 58,000 17,600 141,100 175,900 For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19,400), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements Prepare Five Macaws' contribution margin income statement for last year. a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. b. Follow the format shown in Exhibit 6-22. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. Navigate back to the activity window - screen where you downloaded the initial spreadsheet Click Choose button under step 3; locate the file you just saved and click Open a. b. C. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Summary 4 Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback (Always use cell references and formulas where appropriate to receive full credit. If you copy/ paste from the Instructions tab you will be marked wrong.) Sales revenue Five Macaws Contribution Margin Income Statement For the Year Ended December 31 Less: Variable expenses Variable cost of goods sold Variable selling and marketing expenses Variable web site maintenance expenses Other variable operating expenses Contribution margin Less: Fixed expenses Fixed selling and marketing expenses Fixed web site maintenances expenses Other fixed operating expenses Operating income