Question
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
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 | Unit Sales | Selling Price per Unit | Variable Cost per Unit | ||||||
| 1 | 9,000 | $ | 29 | $ | 12.95 | ||||
| 2 | 16,500 | $ | 99 | $ | 68.55 | ||||
| 3 | 6,000 | $ | 85 | $ | 42.50 | ||||
| 4 | 19,500 | $ | 109 | $ | 85.00 | ||||
| 5 | 4,500 | $ | 19 | $ | 6.35 | ||||
| 6 | 27,000 | $ | 119 | $ | 92.00 | ||||
| 7 | 3,000 | $ | 39 | $ | 14.30 | ||||
| 8 | 7,500 | $ | 79 | $ | 33.18 | ||||
| 9 | 9,000 | $ | 69 | $ | 30.36 | ||||
| 10 | 15,000 | $ | 95 | $ | 77.60 | ||||
| 11 | 10,500 | $ | 59 | $ | 25.40 | ||||
| 12 | 1,500 | $ | 65 | $ | 29.00 | ||||
| 13 | 3,000 | $ | 44 | $ | 12.40 | ||||
| 14 | 6,000 | $ | 49 | $ | 13.48 | ||||
| 15 | 12,000 | $ | 89 | $ | 61.83 | ||||
| 150,000 | |||||||||
Last year, Lyndias 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 a brief tutorial on Charts in Excel.
Click here for a brief tutorial on Conditional Formatting in Excel.
rev: 05_07_2020_QC_CS-210952, 01_09_2021_QC_CS-246235
Excel Analytics 05-02 (Static) Part 2
2. Regarding projections for this year, assume that total unit sales increase by 10%, and everything else holds constant. (Hint: The template contains dynamic formulas, therefore you will only need to modify the input in cell Q15 to complete requirements 2a through 2e.)
a. What would be the projected net operating income for this year?
b. How are the projected unit sales in cells B22 and Q22 calculated?
c. Why are the percentages in cells R28 and R29 the same as the corresponding percentages in cells R8 and R9 even though the projected sales of 165,000 units is 15,000 units greater than last years sales of 150,0000 units?
d. What is the percent increase in total contribution margin (as shown in cell Q29) compared to last years total contribution margin (as shown in cell Q9)?
e. What is the percent increase in net operating income (as shown in cell Q31) compared to last years net operating income (as shown in cell Q11)? Is your answer greater than, less than, or equal to your answer in requirement 2d?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
