Question
Number of Units sold: 10,000 Sales: $250,000 Variable Expenses: $100,000 Contribution Margin: $150,000 Fixed Expenses: $84,000 Net Operating Income: $66,000 1. After inserting the last
Number of Units sold: 10,000
Sales: $250,000
Variable Expenses: $100,000
Contribution Margin: $150,000
Fixed Expenses: $84,000
Net Operating Income: $66,000
1. After inserting the last 5 digits of your student number into the yellow cell (D8) for total fixed costs, enter formulas in the gray cells (E5, E6 and E7) to compute the per unit amounts for Sales, Variable Expenses, and Contribution Margin.
2. Insert formulas in the gray cells (G5, G6, and G7) to compute the percentage of sales for Sales, Variable Expenses, and Contribution Margin.
3. Scenario #1 Insert formulas in the gray cells (G12 through G16) to prepare an income statement, assuming sales increased by 1,000 units.
4. Scenario #2 Insert formulas in the gray cells (I12 through I16) to prepare an income statement, assuming advertising increased by $10,000, and unit sales increased by 20%.
5. Scenario #3 Insert formulas in the gray cells (K12 through K16) to prepare an income statement, assuming variable expenses increased by $5.00 per unit and unit sales increased by 15%.
6. When your assignment is being graded, the grader will change the number of units sold (cell B3) from 10,000 to 20,000 to verify that the formulas you entered will correctly compute the required amounts with this change in data.
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