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Integrative Cases 1-54 (Algo) Cost Dota for Managerial Purposes-Finding Unknowns (LO 1-3) Miller Cereals is a small miling company that makes a single brand of

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Integrative Cases 1-54 (Algo) Cost Dota for Managerial Purposes-Finding Unknowns (LO 1-3) Miller Cereals is a small miling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to "diversify the product portfolio Currently, the company shows an operating profit that is 20 percent of sales. With the single product, other costs were twice the cost of rent The intern estimated that the theremental profit of the new cereal would only be 6.5 percent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller's marketing manager that his analysis was on the company laptop in a spreadsheet with a file name New Product.xlsx The intern then left for a 12 month walkabout in the outback of Australia and cannot be reached When the marketing manager opened the file, it was corrupted and could not be opened She then found an early incomplete) copy on the company's backup server the incomplete spreadsheet i snown as follows the marketing manager then called a cost management accountant in the controller's office and asked for help in reconstructing the analysis Required: As the management accountant, fill in the blank cells (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.) As the management accountant, fill in the blank cells. (Do not round intermediate calculations. F nearest whole number. Enter all amounts as positive values.) Miller Cereals Projected Income Statement For One Year Status Quc! % Increase Alternative: Single Product (Decrease) Two Products 40 % Sales revenue Difference $ 64,000 44,000 62,000 62,000 Costs Material Labor Rent Depreciation Utilities Other Total costs Operating profit % 21 % 50 % % 8,400 elsels 8,400 5,400 1,200 %

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