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I For the excel workbook i am looking for the formulas for the (?) cells (ie. =b4) Chapter 6: Applylng Excel: Exerclse (Part 2 of
I
For the excel workbook i am looking for the formulas for the (?) cells (ie. =b4)
Chapter 6: Applylng Excel: Exerclse (Part 2 of 2) (Algo) 2. Change all of the numbers in the data area of your worksheet so that it looks like this: If your formulas are correct, you should get the correct answers to the following questlons. (a) What is the break-even in dollar sales? (b) What is the margin of safety percentage? A Answer is complete but not entirely correct. (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating Income If unit sales Increase by 20%. Ike this: (a) What is net operating income? (Negatlve amount should be indicated by a minus sign.) (b) By what percentage did the net operating Income Increase? ) Answer is complete but not entirely correct. 5. Thad Morgan, a motorcycle enthuslast, has been exploring the possibility of relaunching the Westem Hombre brand of cycle that was popular In the 1930 s. The retro-look cycle would be sold for $19,000 and at that price, Thad estimates 200 unlts would be sold each year. The varlable cost to produce and sell the cycles would be $14,250 per unit. The annual fixed cost would be $475,000. a. What is the breakeven in unit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worrled about the selling price. Rumors are clrculating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $16,000 to compete effectlvely. In that event, Thad would also reduce fixed expenses to $385,000 by reducing advertising expenses, but he still hopes to sell 200 units per year. d. What would the net operating Income be in this sltuation? (Negative amount should be indicated by a minus sign.)Step by Step Solution
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