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Lyndia Company is a merchandiser that sells a total of 1 5 products to its customers. The company provided the following information from last year:
Lyndia Company is a merchandiser that sells a total of 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 $ and $ 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 tab of the Excel workbook to complete requirements through c Assume the sales mix
percentages as shown in rows and 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 $ as shown in cell Q by changing the unit sales in cell Q
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 tab of the Excel workbook to complete requirements a through d Assume the sales mix holds
constant and the company plans to increase the selling prices of all products by Hint: Focus on cell Q 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
b How is the amount in cell B calculated?
c Why does the contribution margin ratio shown in cell R differ from the corresponding percentage from last year, as shown in
cell R
d Should the company increase its selling prices by this year?
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