Now change all of the dollar amounts in the data area of your worksheet so that it looks like this:

If your formulas are correct, you should get the correct answers to the following questions.

a$.$ What is the gross margin now?

b$.$ What is the net operating income now?

c$.$ What is the contribution margin now?

Suppose that sales are $3\%$ higher as shown below:

Enter these new data into your worksheet. Make sure you enter all of the new data $-$ not just the sales.

a$.$ What is the gross margin now?

b$.$ What is the net operating income now?

c$.$ What is the contribution margin now?

d$.$ When sales increase by $3\%,$ which of the following should also increase by $3\%$ in a merchandising company?

e$.$ When sales increase by $3\%,$ which of the following should increase by more than $3\%$ in a merchandising company?Based on a review of the data visualizations, which of the following statements is true?

multiple choice $2$

The total expenses are the same in the traditional and contribution format income statements.

The total expenses are higher in the traditional income statement when compared to the contribution format income statement.

The total expenses are lower in the traditional income statement when compared to the contribution format income statement.

The cost of goods sold is the same in both income statements, but the selling and administrative expenses are higher in the traditional income statement when compared to the contribution format income statement.