Instructions
>>	You are a financial manager for Halcyon Corp. Consider the following information from its most recent
	fiscal year, and read the email from your supervisor on the following tab.
>>	Per the instructions in the email, determine the contribution margins of the Mountain, Southwest, and
	Pacific divisions. Prepare an incremental analysis for each division concering the decision to keep or
	eliminate it. Prepare a new income statement assuming the divisions that should be eliminated are
	eliminated. This analysis should be done in an Excel spreadsheet. Your grade will be based on your
	answers, as well as the proper use of Excel functionality. Specifically, your solution should use cell
	references and formulas, rather than keyed-in values to derive your solutions. See you instructor or go
	to the accounting lab if you need help doing this.
>>	In a Word document, prepare a response to your supervisor, explaining your results and your
	recommendations.
>>	Attach both files to the Canvas assignment space by 10:00AM on Monday, November 5.
Halcyon Corporation
Income Statement
Fiscal Year Ended June 30, 2018 - by Division
			Northeast	Mid-Atlantic	Southeast	Midwest	Mountain	Southwest	Pacific	Total
Sales			20,000,000	18,000,000	13,500,000	14,500,000	8,000,000	12,500,000	11,000,000	97,500,000
Cost of goods sold			13,520,000	11,820,000	9,030,000	9,790,000	6,050,000	9,620,000	8,020,000	67,850,000
Gross profit			6,480,000	6,180,000	4,470,000	4,710,000	1,950,000	2,880,000	2,980,000	29,650,000
Selling, general, and administrative costs			4,080,000	3,620,000	3,110,000	2,710,000	2,180,000	3,810,000	3,510,000	23,020,000
Net income			2,400,000	2,560,000	1,360,000	2,000,000	(230,000)	(930,000)	(530,000)	6,630,000
Percentage of costs that are considered variable
			Northeast	Mid-Atlantic	Southeast	Midwest	Mountain	Southwest	Pacific
Cost of goods sold			78.0%	81.0%	81.0%	81.0%	81.0%	82.0%	81.0%
Selling, general, and administrative costs			12.0%	9.0%	12.0%	12.0%	8.0%	10.0%	10.0%
Schedule of allocated corporate costs
				Pct. of total		Allocated
			Sales	sales		corporate costs
	Northeast		20,000,000	20.51%		820,400
	Mid-Atlantic		18,000,000	18.46%		738,400
	Southeast		13,500,000	13.85%		554,000
	Midwest		14,500,000	14.87%		594,800
	Mountain		8,000,000	8.21%		328,400
	Southwest		12,500,000	12.82%		512,800
	Pacific		11,000,000	11.28%		451,200
	Total		97,500,000	100.00%		4,000,000
	All allocated costs are included in the "Selling, general, and administrative costs" line in the
	income statement, and are to be treated as unavoidable fixed costs.

oooo T-Mobile Wi-Fi 1:40 PM KExcel Project 1 F18 project 1.xlsx Problem and instructions Email Your Solutions To: Dan Weimer (ay6233@haleyon.com) From: Hector Alonso (ay6233haleyon.com) Subject: FY18 Resus Hey Dan: I just got out of a meeting with the CFO going over our preliminary final numbers for FYE 6/30/18 Iswear Tve never seen anyone looking at record sales and record profes be so furious. She's realy worked up over the Mountain, Southwest, and Pacific divisions losing money (again), and she's about ready to burn down everyehing west of the Mississipp She says we've been trying to pet these things to ture a proft tora dime, and, quite frankly, she's right e she may not be right though, is hat increasing profits is as simple as shutting those divisions down True enough, we get nid of all the variable costs for any division we close, and a lot of the fixed costs, too What we don't get rid of is those four milion of costs that are allocated down trom corporate based on relative sales weight. Those costs are fixed and they arent divisions just absorb that cost nywhere. We close Pacific, and the other here's what I need from you. For all our money losing divisionis, fgure out what our contribution margins are. I've got from each division's accountants and included it in the spreadsheet attached From that, do an incremental analysis on what happenis to company profit if we dlose the Mountain, Southwest, or Pacific divisions. Do each analysis rundown of how their expenses break down fxed/vaniable, Finaly, put together a pro forma by division and in total) if we closed one or more of the dvisions. This should only reflect us closinthe divisions that would make us more profitable based on your incremental analysis Remember, the alocated corporate foxed costs would have to be reallocated based on the new revenue numbers, and Ive also atached the schedule of how we curently do n statement, showing what our eompany's income wouid have been When you have all thast together, just wrie up a quick one or two paragraph summary of what youre recommending Which division ar divisions should be closed, and why. Also include any other factors we should consider or questions we should ask beyond what's onthe ncome statement before we see any plans in motion My next meeting with the CFO is on November 6.So I need this by mi-morning on the Ser Many 50 DashboardCalendar To DoNotifications Inbox