Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following information from last year: Product 1 3 5 7 Unit Solen 9,000 16,500 6,000 19.500 4.500 27,000 3,000 7.500 9,000 15,000 10,500 1,500 3,000 6,000 12.000 150,000 Selling Price per Unit $ 29 $ 99 $ 85 $109 $19 $ 119 $ 39 $ 79 5 69 S 95 $ 59 $65 $44 5.49 $89 Variable cost per Unit $12.95 $68.55 $42.50 $85.00 $5.35 $92.00 $14.30 $33.10 $30.36 $77.60 $25.40 $29.00 $12.40 $13.48 $61.83 ces 9 10 11 12 13 15 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year. Click here to download the Excel template which you will use to answer the questions that follch Click here for a brief tutorial on Gool Seek in Excel Click here for a a brief tutorial on Charts in Excel Click here for a brief tutorial on Conditional Formatting in Excel 150,000 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year. Click here to download the Excel template, which you will use to answer the questions that follow, Click here for a brief tutorial on Goal Seek in Excel Click here for a brief tutorial on Charts in Excel Click here for a brief tutorial on Conditional Formatting in Excel. 3. Refer to the original data (in other words, return cell 015 to its original value of 0%) and assume the sales mix percentages (as shown in rows 3 and 21) hold constant. a. Using Goal Seek, calculate the total unit sales required to break even. (Hint: Instruct Goal Seek to obtain a net operating income of $0, as shown in cell Q31, by changing the unit sales in cell 014.) b. What are the dollar sales required to break even? c. What was the company's margin of safety last year? 4. Refer to the original data (in other words, return cell 014 to its original value of 150,000 units). Assume the sales mix holds constant and the company plans to increase the selling prices of all products by 5%. (Hint: Focus on cell 016 to input this projection.) a. Using Goal Seek, calculate the total unit sales required to break even. Is your answer greater thad less than or equal to the answer you obtained in requirement 3a? b. How is the amount in cell B23 calculated? c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell R9? d. Should the company increase its selling prices by 5% this year? Reg 3A Reg 35 Reg 3C Reg 41 ROG 4A2 Req 4B Reg 4 Reg 4D 8 4 6 B 9 1 Goal Seek: 2 Goal Seek is a tool within Microsoft Excel that performs a "what if analysis" that enables you to learn what input values would be 3 needed to achieve a desired goal or outcome. When utilizing Goal Seek you should proceed as follows: 5 1. Under the "Data" tab click on the "What If Analysis" drop down in the "Forecast" section 7 2. From that drop down select "Goal Seek 3. A "Goal Seek" option box will appear with three values to be manipulated a. The first input is "Set cell" which is the cell with linked formulas that you want to change to a specific outcome. Here you 10 will select the specified outcome cell or type in the cell value manually 11 b. The second input is "To value" which is the desired goal or outcome that you want the cell you selected in the first input 12 to be changed to. For example, if you want to break even you could set this value to or if you wanted profit of $5,000 13 you could input 5000 14 The third and final input is "By changing cell" is the cell that contains the variable you want to change that is linked to the 15 formulalc output cell that was chosen in the "Set cell"input 16 17 Click OK 18 5. Now the "Set cell" should have been modified to the "To value you chose as well as the cell value that you designated as the 19 By changing cell" variable 20 21 22 23 24 25 26 4 Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following information from last year: Product 1 3 5 7 Unit Solen 9,000 16,500 6,000 19.500 4.500 27,000 3,000 7.500 9,000 15,000 10,500 1,500 3,000 6,000 12.000 150,000 Selling Price per Unit $ 29 $ 99 $ 85 $109 $19 $ 119 $ 39 $ 79 5 69 S 95 $ 59 $65 $44 5.49 $89 Variable cost per Unit $12.95 $68.55 $42.50 $85.00 $5.35 $92.00 $14.30 $33.10 $30.36 $77.60 $25.40 $29.00 $12.40 $13.48 $61.83 ces 9 10 11 12 13 15 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year. Click here to download the Excel template which you will use to answer the questions that follch Click here for a brief tutorial on Gool Seek in Excel Click here for a a brief tutorial on Charts in Excel Click here for a brief tutorial on Conditional Formatting in Excel 150,000 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year. Click here to download the Excel template, which you will use to answer the questions that follow, Click here for a brief tutorial on Goal Seek in Excel Click here for a brief tutorial on Charts in Excel Click here for a brief tutorial on Conditional Formatting in Excel. 3. Refer to the original data (in other words, return cell 015 to its original value of 0%) and assume the sales mix percentages (as shown in rows 3 and 21) hold constant. a. Using Goal Seek, calculate the total unit sales required to break even. (Hint: Instruct Goal Seek to obtain a net operating income of $0, as shown in cell Q31, by changing the unit sales in cell 014.) b. What are the dollar sales required to break even? c. What was the company's margin of safety last year? 4. Refer to the original data (in other words, return cell 014 to its original value of 150,000 units). Assume the sales mix holds constant and the company plans to increase the selling prices of all products by 5%. (Hint: Focus on cell 016 to input this projection.) a. Using Goal Seek, calculate the total unit sales required to break even. Is your answer greater thad less than or equal to the answer you obtained in requirement 3a? b. How is the amount in cell B23 calculated? c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell R9? d. Should the company increase its selling prices by 5% this year? Reg 3A Reg 35 Reg 3C Reg 41 ROG 4A2 Req 4B Reg 4 Reg 4D 8 4 6 B 9 1 Goal Seek: 2 Goal Seek is a tool within Microsoft Excel that performs a "what if analysis" that enables you to learn what input values would be 3 needed to achieve a desired goal or outcome. When utilizing Goal Seek you should proceed as follows: 5 1. Under the "Data" tab click on the "What If Analysis" drop down in the "Forecast" section 7 2. From that drop down select "Goal Seek 3. A "Goal Seek" option box will appear with three values to be manipulated a. The first input is "Set cell" which is the cell with linked formulas that you want to change to a specific outcome. Here you 10 will select the specified outcome cell or type in the cell value manually 11 b. The second input is "To value" which is the desired goal or outcome that you want the cell you selected in the first input 12 to be changed to. For example, if you want to break even you could set this value to or if you wanted profit of $5,000 13 you could input 5000 14 The third and final input is "By changing cell" is the cell that contains the variable you want to change that is linked to the 15 formulalc output cell that was chosen in the "Set cell"input 16 17 Click OK 18 5. Now the "Set cell" should have been modified to the "To value you chose as well as the cell value that you designated as the 19 By changing cell" variable 20 21 22 23 24 25 26 4