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.

Question 1: What would be the projected net operating income for this year?

Question 2:

How are the projected unit sales in cells B22 and Q22 calculated?

2b-1.	How are the projected unit sales in cell B22 calculated?
	Total unit sales (cell Q22) Product 1s sales mix percentage (cell B21)radio button unchecked1 of 4
	Total unit sales (cell Q22) + Product 1s sales mix percentage (cell B21)radio button unchecked2 of 4
	Total unit sales (cell Q22) Product 1s sales mix percentage (cell B21)radio button unchecked3 of 4
	Total unit sales (cell Q22) Product 1s sales mix percentage (cell B21) radio button unchecked4 of 4
2b-2.	How are the projected unit sales in cell Q22 calculated?
	Last year's unit sales (Last year's unit sales Change in unit sales)radio button unchecked1 of 4
	Last year's unit sales + (Last year's unit sales Change in unit sales)radio button unchecked2 of 4
	Last year's unit sales (Last year's unit sales Change in unit sales)radio button unchecked3 of 4
	Last year's unit sales (Last year's unit sales Change in unit sales)radio button unchecked4 of 4

Question 3:

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?

	Because the sales mix percentages have not changed, but each products selling price per unit and variable expense per unit have changed.radio button unchecked1 of 2 Because the sales mix percentages have not changed and each products selling price per unit and variable expense per unit have also not changed.radio button unchecked2 of 2

Question 4: 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)?

Question 5: 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)? (Round percentage answer to 1 decimal place.)

Question 6:

Which of the following statements is true?

The percent increase in net operating income is

the percent increase in contribution margin because