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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

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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 1 2 3 4 6 7 8 9 10 11 12 13 14 15 Unit Sales 9,000 16,500 6,000 19,500 4,500 27,000 3,000 7,500 9,000 15,000 10,500 1,500 3,000 6,000 12,000 150,000 Selling Price per Unit $ 29 $ 99 $ 85 $109 $ 19 $119 $ 39 $ 79 $ 69 $95 $ 59 $ 65 $ 44 $ 49 $ 89 Variable Cost per Unit $12.95 $68.55 $42.50 $85.00 $ 6.35 $92.00 $14.30 $33.18 $30.36 $27.60 $25.40 $29.00 $12.40 $13.48 $61.83 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 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 aa brief tutorialon Charts in Excel Click here for a brief tutorial on Conditional Formatting in Excel 3. Refer to the original data (in other words, return cell 015 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 31. by changing the unit sales in cell 014.) b. What are the dollar sales required to break even? c. What was the company's margin of safety last year? 4. Refer to the original data (in other words, return cell 014 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 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 3a? b. How is the amount in cell 823 calculated? c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell d. Should the company increase its selling prices by 5% this year? R9? Why Us E CRUDUor margin ratio shown in cellR29 differ from the corresponding percentage from last year, as shown R9? d. Should the company increase its selling prices by 5% this year? Red 3A Reg 35 Reg 3 Reg 41 Reg 4A2 Reg 48 Reg 4 Reg 4D Using Goal Seek, calculate the total unit sales required to break even. (Hint: Instruct Goal Seek to obtain a net operating income of so, as shown in cell Q31, by changing the unit sales in cell 014.) Unit sal to broak even units ROSA Req 3B > a. Using Goal Seek, calculate the total unit sales required to break ev 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 fror R9? d. Should the company increase its selling prices by 5% this year? Req 3A Req 3B Req 3C Req 4A1 Reg 4A2 What are the dollar sales required to break even? Dollar sales to break even 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 R9? d. Should the company increase its selling prices by 5% this year? Reg 3A Reg 3B Req 30 Req 4A1 Reg 4A2 Reg 48 Req 4C Req 4D Which of the following statements is true? The answer in Requirement al is the unit sales to break even in requirement za because c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last y R9? d. Should the company increase its selling prices by 5% this year? Req Req 3B Req 30 Req 4A1 Req 4A2 Req 4B Req 4C Req 4D How is the amount in cell B23 calculated? Selling price per unit - (Selling price per unit * Change in selling prices) Oselling price per unit + (Selling price per unit * Change in selling prices) Selling price per unit * (Selling price per unit * Change in selling prices) Selling price per unit - (Selling price per unit * Change in selling prices) U. NUVIS CHUUIC LCI DZOLALUIGICU c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, ass R9? d. Should the company increase its selling prices by 5% this year? Req Req 3B Req 3C Req 4A1 Reg 4A2 Reg 4B Reg 4C Reg 4D Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell R97 Because each product's selling price is being increased by 5% while holding its variable expense per unit constant Because each product's selling price is being increased by 5% while decreasing its variable expense per unit by 5% Req 3A Req 3B Req 3C Reg 41 Req 4A2 Reg 48 Reg 40 Req 4D Which of the following statements is true? but the company increases its selling prices by 5%, it will increase profits because the break-even point (in units) at these higher pnces is less than the break-even point at the onginal prices Oirthe company increases its selling prices by 5%, it wil 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 Oil the company increases its selling prices by 5%, the impact on profits will depend on how the price hike affects customer demand a. Using Goal Seek, calculate the total unit sales required to break ev 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 fror R9? d. Should the company increase its selling prices by 5% this year? Req 3A Req 3B Req 3C Req 4A1 Reg 4A2 What are the dollar sales required to break even? Dollar sales to break even 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 R9? d. Should the company increase its selling prices by 5% this year? Reg 3A Reg 3B Req 30 Req 4A1 Reg 4A2 Reg 48 Req 4C Req 4D Which of the following statements is true? The answer in Requirement al is the unit sales to break even in requirement za because c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last y R9? d. Should the company increase its selling prices by 5% this year? Req Req 3B Req 30 Req 4A1 Req 4A2 Req 4B Req 4C Req 4D How is the amount in cell B23 calculated? Selling price per unit - (Selling price per unit * Change in selling prices) Oselling price per unit + (Selling price per unit * Change in selling prices) Selling price per unit * (Selling price per unit * Change in selling prices) Selling price per unit - (Selling price per unit * Change in selling prices) U. NUVIS CHUUIC LCI DZOLALUIGICU c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, ass R9? d. Should the company increase its selling prices by 5% this year? Req Req 3B Req 3C Req 4A1 Reg 4A2 Reg 4B Reg 4C Reg 4D Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell R97 Because each product's selling price is being increased by 5% while holding its variable expense per unit constant Because each product's selling price is being increased by 5% while decreasing its variable expense per unit by 5% Req 3A Req 3B Req 3C Reg 41 Req 4A2 Reg 48 Reg 40 Req 4D Which of the following statements is true? but the company increases its selling prices by 5%, it will increase profits because the break-even point (in units) at these higher pnces is less than the break-even point at the onginal prices Oirthe company increases its selling prices by 5%, it wil 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 Oil the company increases its selling prices by 5%, the impact on profits will depend on how the price hike affects customer demand

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