Lyndia Company is a merchandiser that sells a total of $15$ products to its customers. The company provided the following

information from last year:

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 for a brief tutorial on Goal Seek in Excel.

Navigate to the "Requirement $3"$ tab of the Excel workbook to complete requirements $3$ a$.$ through $3.$ 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 Q$31,$ by changing the unit sales in cell Q$14.)$

b$.$ What are the dollar sales required to break even?

c$.$ What was the company's margin of safety last year?

Navigate to the "Requirement $4"$ tab of the Excel workbook to complete requirements $4$ a$.$ through $4$ d $.$ Assume the sales mix holds

constant and the company plans to increase the selling prices of all products by $5\%.($Hint: Focus on cell Q$16$ to input this

projection.$)$

a$.$ Using Goal Seek, calculate the total unit sales required to break even. Is your answer greater than, less than, or equal to the

answer you obtained in requirement $3$a$?$

b$.$ How is the amount in cell B$23$ calculated?

c$.$ Why does the contribution margin ratio shown in cell R$29$ differ from the corresponding percentage from last year, as shown in

cell R$9?$

d$.$ Should the company increase its selling prices by $5\%$ this year?

Which of the following statements is true?

The answer in Requirement $4a1$ is

the total fixed expenses did not change and the

contribution margin per unit has decreased.

the total fixed expenses decreased and the contribution

margin per unit has increased.

the total fixed expenses did not change and the

contribution margin per unit has increased.