It is December and you have just been hired as an accountant by the Sweetwater Candy Company operating in Fort Collins. Sweetwater is a boutique candy maker that produces only one specialty product: boxes of assorted chocolates that include a regional favorite using Colorado peaches for the filling. These chocolates have become favorites of locals and tourists. The Sweetwater Candy Company produces its chocoates at a small facility in Fort Collins Sweetwater sells each unit for $25 per box. (1 unit = 1 box of chocolates) You have been asked to get involved with the budget preparation for next year and to use the information to make decisions. The budget process is already underway, and the accounting team has worked with the sales and marketing team to develop the following sales budget for next year: $25.00 Selling price per unit Units Dollar Sales January 1,200 $30,000 February 1,000 $25,000 March 1,600 $40,000 April 1,400 $35,000 May 1,800 $ 45,000 June July 2,500 $62,500 3,500 $87,500 August September October November 3,000 $75,000 2,700 $67,500 2,000 $50,000 1,800 $45,000 2,500 $62,500 December Total Annual Sales 25,000 $625,000 Work through the worksheets in this Excel workbook to complete the required calculations and analyses. Provide explanations as instructed. Shown below is last year's information relating to one unit (i.e., one box of chocolates) produced and sold by Sweetwater Candy Company: Unit selling price Variable cost per unit $25.00 $12.92 Sweetwater's annual fixed costs: $110,400 Required: For each requirement, please add your name in the SOLUTION row for requirements that you prepared the solution. Add your name in the REVIEW row for requirements that you reviewed. If you do not agree with the solution, leave comments for your teammate explaining how you would fix it. Do not add your name in the REVIEW cell until you agree with the solution. (A.) Calculate Sweetwater's annual break-even point last year in dollar sales and in number of units sold. (B.) Based on last year's annual sales of 18,000 units, determine Sweetwater's annual operating income.. SOLUTION: (A.) $228,476.82 (B.) $107,040.00 (C.) 25695.3642 (D.) 11973.96963 (E.) REVIEW: (C.) Management has set a goal for next year of achieving an annual operating income of $200,000. Based on last year's sales price, variable costs, and fixed costs, calculate the dollar amount and number of units of annual sales required for Sweetwater to earn an annual operating income of $200,000. Comments: (D.) The current manufacturing facilty has a maximum capacity of producing 20,000 units per year. The company is considering an expansion that will increase annual fixed costs by 10% and increase variable costs by 15%. The expansion will double production capacity to 40,000 units per year, and management estimates sales of 25,000 units next year. Assuming the sales price remains at $25 per unit and the expansion is implemented, compute: breakeven point in units and in dollars operating income. (E.) To be able to produce the budgeted sales volume of 25,000 units next year, management has decided to go ahead with the expansion plans. The expansion will begin in January and should only take about 8 weeks to complete. Is the expansion a good idea? Explain. 9139.072848 For (C), you calculated the # of units but you also need to find the amount in dollar sales. For (D), you calculated the # of units but you also need to find the amount in dollar sales. And, you need the operating income after expansion