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.

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rev: 05_07_2020_QC_CS-210952, 01_09_2021_QC_CS-246235

Excel Analytics 05-02 (Static) Part 3

3. Refer to the original data (in other words, return cell Q15 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 Q14.)

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

c. What was the companys margin of safety last year?

4. Refer to the original data (in other words, return cell Q14 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 Q16 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 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?

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 Q14.)

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 Q14.)

1) Unit Sales to Break Even ( answer in Units)

2) Dollar Sales to break even

3) Margin of Safety Last year

4) Unit Sales to Break Even (return Data to its original values)

Which of the following statements is true?

The Answer in Requirement 4a1 is ___ (greater than , Less than, Equal too) The Unit Sales in requirement 3a because _____

• 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.

How is the amount in cell B23 calculated?

Selling price per unit (Selling price per unit Change in selling prices)radio button unchecked1 of 4 Selling price per unit + (Selling price per unit Change in selling prices)radio button unchecked2 of 4 Selling price per unit (Selling price per unit Change in selling prices)radio button unchecked3 of 4 Selling price per unit (Selling price per unit Change in selling prices)radio button unchecked4 of 4

• Which of the following statements is true?

  If the company increases its selling prices by 5%, it will increase profits because the break-even point (in units) at these higher prices is less than the break-even point at the original prices.radio button unchecked1 of 3 If the company increases its selling prices by 5%, it will decrease profits even though the break-even point (in units) at these higher prices is less than the break-even point at the original prices.radio button unchecked2 of 3 If the company increases its selling prices by 5%, the impact on profits will depend on how the price hike affects customer demand.