Langilles Heat Pumps
Income Statements
For the five months ended May 31, 2019
	January	February	March	April	May
Sales in units	200	400	300	150	450
Sales in dollars	$80,000	$160,000	$120,000	$60,000	$180,000
Cost of goods sold	33,000	66,000	49,500	24,750	74,250
Gross margin	47,000	94,000	70,500	35,250	105,750
Operating expenses
Advertising	2,000	2,000	2,000	2,000	2,000
Office supplies	4,250	7,850	6,050	3,350	8,750
Depreciation	750	750	750	750	750
Salaries and commissions	14,000	24,000	19,000	11,500	26,500
Communication expense	2,800	5,600	4,200	2,100	6,300
Total Operating expenses	23,800	40,200	32,000	19,700	44,300
Net Income	$23,200	$53,800	$38,500	$15,550	$61,450

Required

Prepare the required in Excel using the guidelines below.

1. Identify each cost as variable, fixed or mixed. Estimate each mixed cost using the least-squares regression method.
   1. Include the cost formula on the chart.
   2. Extend the line to ensure it crosses the y-axis.
   3. Format your chart to include a chart heading and x and y axis labels
2. Estimate the revenue and expenses for the month of June assuming that the company plans to sell 525 units. Prepare an income statement for June using the contribution margin format.