Please answer all questions. Attached below is data for the case.

Use the Westfield Corporation Excel documents for questions 3 to 18. 15. What does the trend in total marketing expenses for years 6,7 , and 8 suggest? The spending of marketing dollars is improving in effectiveness Marketing spending has increased each year when it should be declining each year The spending of marketing dollars is not improving in effectiveness Marketing is spending too much Question 16 0.5pts Use the Westfield Corporation Excel documents for questions 3 to 18. 16. Does the company classify "advertising" as a fixed, variable, or a mixed expense and why? Fixed but this is in error as advertising is a variable expense Fixed because sales vary with advertising expense Fixed because sales do not directly vary with advertising expense Variable because sales do not directly vary with advertising expense William Carlton Haeberle (2018) William Carlton Haeberle (2018) \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|l|}{ Westfield Corporation Sales Forecast } \\ \hline Average Price Projection & Year 9 & & & & \\ \hline Year 8 average price & 24.15 & & & & \\ \hline \multicolumn{6}{|l|}{ Target Market(s) Adjustments } \\ \hline Target market(s) & 0 & & & & \\ \hline \multicolumn{6}{|l|}{ Product Adjustments } \\ \hline New templates & 0.0898 & & & & \\ \hline Extensions \& options to current templates & 0.0079 & & & & \\ \hline \multicolumn{6}{|l|}{ New product development } \\ \hline \multicolumn{6}{|l|}{ Price Adjustments } \\ \hline \multicolumn{6}{|l|}{ Terms of sale } \\ \hline Distribution Adjustments & & & & & \\ \hline Distribution expansion - California \& New York & 0.085 & & & & \\ \hline \multicolumn{6}{|l|}{ Distribution expansion - Mexico } \\ \hline \multicolumn{6}{|l|}{ Promotion Adjustments } \\ \hline Advertising & 0.024 & & & & \\ \hline Sales promotion & 0 & & & & \\ \hline Sales rep commission structure & 0.01 & & & & \\ \hline Training sales reps & 0.02 & & & & \\ \hline Travel & 0.01 & & & & \\ \hline Website \& IT & 0 & & & & \\ \hline \multicolumn{6}{|l|}{ Environmental Factor Adjustments } \\ \hline Competitive & -0.06 & & & & \\ \hline Economic & 0.048 & & & & \\ \hline Political, legal, regulatory & 0.036 & & & & \\ \hline Social/Cultural & 0 & & & & \\ \hline Technological & 0 & & & & \\ \hline \multirow[t]{2}{*}{ Average Price Projection } & $24.42 & & & & \\ \hline & & & Year 9 & & \\ \hline Sales Volume Projection & Year 9 & Weight & Weighted & & \\ \hline Volume Forecast by \# of Sales Reps - Schedule 1 & 1,263,464 & 50.00% & 631,732 & & \\ \hline Volume Forecast by Areas of Distribution - Schedule 2 & 1,294,832 & 40.00% & 517,933 & & \\ \hline Volume Forecast by \# of Product Templates - Schedule 3 & 1,100,167 & 10.00% & 110,017 & & \\ \hline \multirow[t]{2}{*}{ Sales Volume Projection } & & & 1,259,682 & & \\ \hline & & & & Forecast & \\ \hline Schedule 1 - Volume Forecast by \# of Sales Reps & Year 6 & Year 7 & Year 8 & Year 9 & \\ \hline Number of sales reps & 10 & 12 & 14 & 20 & \\ \hline Volume & 800,000 & 890,000 & 1,010,000 & & \\ \hline Average volume per sales rep & 80,000 & 74,167 & 72,143 & & \\ \hline Weight & 20% & 30% & 50% & & \\ \hline Weighted average - Volume per Sales Rep & 16,000 & 22,250 & 36,071 & 74,321 & \\ \hline \multirow[t]{2}{*}{ Projected sales volume } & & & & 1,263,464 & \\ \hline & & & & Forecast & \\ \hline Schedule 2 - Volume Forecast by Areas of Distribution & Year 6 & Year 7 & Year 8 & Year 9 & \# Sales Reps \\ \hline Arizona & & & 40,000 & 74,321 & 1 \\ \hline California & & & & 111,482 & 3 \\ \hline Florida & 160,000 & 170,000 & 180,000 & 200,668 & 3 \\ \hline Georgia & 50,000 & 80,000 & 105,000 & 105,000 & 1 \\ \hline Illinois & 155,000 & 160,000 & 170,000 & 170,000 & 2 \\ \hline Indiana & 80,000 & 85,000 & 80,000 & 80,000 & 1 \\ \hline Michigan & 90,000 & 95,000 & 100,000 & 100,000 & 1 \\ \hline New York & & & & 111,482 & 3 \\ \hline Ohio & 115,000 & 120,000 & 115,000 & 118,914 & 2 \\ \hline Texas & 150,000 & 180,000 & 220,000 & 222,964 & 3 \\ \hline \multicolumn{6}{|l|}{ Mexico } \\ \hline \multirow[t]{2}{*}{ Totals } & 800,000 & 890,000 & 1.010.000 & 1.294.832 & 20 \\ \hline & & & & Forecast & \\ \hline Schedule 3 - Volume Forecast by \# of Product Templates & Year 6 & Year 7 & Year 8 & Year 9 & \\ \hline# of product templates & 130 & 144 & 160 & 177 & \\ \hline Volume & 800,000 & 890,000 & 1,010,000 & & \\ \hline Yearly average sales volume per template & 6,154 & 6,181 & 6,313 & & \\ \hline Average sales volume per template & & & 6,216 & & \\ \hline Projected sales volume & & & & 1,100,167 & \\ \hline \end{tabular} William Carlton Haeberle (2018) \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Exhibt 1} & \multirow[b]{3}{*}{ Year 6} & \multirow[b]{3}{*}{Yr6%} & \multicolumn{5}{|c|}{\begin{tabular}{l} Westfield Corporation \\ Functional Format Income Statements \end{tabular}} \\ \hline & & & & & & & Proforma \\ \hline & & & Year 7 & Yr 7% & Year 8 & Yr 8% & Year 9 \\ \hline \# of Games Sold & 800,000 & & 890,000 & & 1,010,000 & & 1,259,682 \\ \hline Average Price per Game & $23.00 & & $24.00 & & $24.15 & & $24.42 \\ \hline Sales Revenue & $18,400,000 & 100.00% & $21,360,000 & 100.00% & $24,391,500 & 100.00% & $30,762,309 \\ \hline less: Returns \& Allowances & 30,000 & 0.16% & 29,000 & 0.14% & 31,000 & 0.13% & 0 \\ \hline Net Sales Revenue & 18,370,000 & 99.84% & 21,331,000 & 99.86% & 24,360,500 & 99.87% & 30,762,309 \\ \hline less: Cost of Goods Sold (Sch 1) & 9,766,440 & 53.08% & 10,800,680 & 50.56% & 12,587,618 & 51.61% & 0 \\ \hline Gross Margin & 8,603,560 & 46.76% & 10,530,320 & 49.30% & 11,772,882 & 48.27% & 30,762,309 \\ \hline less: Marketing Expenses (Sch 7) & 5,358,000 & 29.12% & 6,194,000 & 29.00% & 7,010,000 & 28.74% & 8,781,000 \\ \hline less: G \& A Expense (Sch 8) & 1,845,000 & 10.03% & 2,004,000 & 9.38% & 2,202,000 & 9.03% & 0 \\ \hline Net Operating Income & 1,400,560 & 7.61% & 2,332,320 & 10.92% & 2,560,882 & 10.50% & 21,981,309 \\ \hline less: Other Expenses & 204,000 & 1.11% & 180,000 & 0.84% & 156,000 & 0.64% & \\ \hline Net Income Before Income Taxes & $1,196,560 & 6.50% & $2,152,320 & 10.08% & $2,404,882 & 9.86% & 21,981,309 \\ \hline less: Allowance for Income Taxes & 454,693 & 2.47% & 817,882 & 3.83% & 913,855 & 3.75% & 8,352,898 \\ \hline Net Income After Taxes & $741,867 & 4.03% & $1,334,438 & 6.25% & $1,491,027 & 6.11% & 13,628,412 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Schedule 7 - Marketing Expenses & & & & & & & Proforma \\ \hline & Year 6 & Yr6% & Year 7 & Yr7% & Year 8 & Yr 8% & Year 9 \\ \hline Advertising & $1,000,000 & 5.43% & $1,180,000 & 5.52% & $1,210,000 & 4.96% & $1,410,000 \\ \hline Allocated Overhead & 300,000 & 1.63% & 295,000 & 1.38% & 312,000 & 1.28% & 312,000 \\ \hline Depreciation & 30,000 & 0.16% & 30,000 & 0.14% & 30,000 & 0.12% & 30,000 \\ \hline Distribution Expansion Costs & 0 & 0.00% & 50,000 & 0.23% & 0 & 0.00% & 100,000 \\ \hline Other Expenses & 80,000 & 0.43% & 102,000 & 0.48% & 103,000 & 0.42% & 103,000 \\ \hline Research and Development & 600,000 & 3.26% & 550,000 & 2.57% & 580,000 & 2.38% & 620,000 \\ \hline Salaries \& Commissions & 2,000,000 & 10.87% & 2,490,000 & 11.66% & 2,900,000 & 11.89% & 3,746,000 \\ \hline Sales Promotion & 178,000 & 0.97% & 300,000 & 1.40% & 200,000 & 0.82% & 220,000 \\ \hline Supplies \& Equipment & 100,000 & 0.54% & 30,000 & 0.14% & 25,000 & 0.10% & 30,000 \\ \hline Training-Sales Reps & 200,000 & 1.09% & 160,000 & 0.75% & 400,000 & 1.64% & 520,000 \\ \hline Travel & 700,000 & 3.80% & 840,000 & 3.93% & 1,080,000 & 4.43% & 1,520,000 \\ \hline Website \& IT & 170,000 & 0.92% & 167,000 & 0.78% & 170,000 & 0.70% & 170,000 \\ \hline Total Marketing Expenses & $5,358,000 & 29.12% & $6,194,000 & 29.00% & $7,010,000 & 28.74% & $8,781,000 \\ \hline Schedule 8 - General \& Admi & & & & & & & Proforma \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Schedule 1 \\ Cost of Goods Manufactured \end{tabular}} & \multirow[b]{2}{*}{ Year 6} & \multirow[b]{2}{*}{ Yr 6%} & \multicolumn{2}{|c|}{ Westfield Corporation } & \multirow[b]{2}{*}{ Year 8} & \multirow[b]{2}{*}{ Yr 8%} & \multirow[b]{2}{*}{\begin{tabular}{l} Proforma \\ Year 9 \end{tabular}} & \multirow[b]{2}{*}{ Yr 9%} \\ \hline & & & Year 7 & Yr 7% & & & & \\ \hline Direct Labor (DL) (Sch 3) & $2,365,440 & 24.22% & $2,938,880 & 27.21% & $3,262,848 & 25.92% & $0 & \#DIV/0! \\ \hline Direct Materials & 4,360,000 & 44.64% & 5,028,500 & 46.56% & 6,060,000 & 48.14% & 0 & \#DIV/0! \\ \hline Manufacturing Overhead (Sch 2) & 3,041,000 & 31.14% & 2,833,300 & 26.23% & 3,264,770 & 25.94% & 0 & \#DIV/0! \\ \hline Cost of Goods Manufactured & $9,766,440 & 100.00% & $10,800,680 & 100.00% & $12,587,618 & 100.00% & $0 & \#DIV/0! \\ \hline Sales Revenue & $18,370,000 & & $21,331,000 & & $24,360,500 & & $30,762,309 & \\ \hline Units Produced & 800,000 & & 890,000 & & 1,010,000 & & 1,259,682 & \\ \hline Units Produced per DL Employee & 12,121 & & 11,125 & & 11,609 & & 11609.96977 & \\ \hline \multicolumn{9}{|l|}{ Per Unit Data } \\ \hline Direct Labor per unit & $2.9568 & & $3.3021 & & $3.2305 & & $0.0000 & \\ \hline Direct Materials per unit & $5.4500 & & $5.6500 & & $6.0000 & & & \\ \hline Manufacturing Overhead per unit & $3.8013 & & $3.1835 & & $3.2324 & & $0.0000 & \\ \hline \multicolumn{9}{|l|}{ As a % of Sales Revenue } \\ \hline Direct Labor & 12.88% & & 13.78% & & 13.39% & & 0.00% & \\ \hline Direct Materials & 23.73% & & 23.57% & & 24.88% & & 0.00% & \\ \hline Manufacturing Overhead & 16.55% & & 13.28% & & 13.40% & & 0.00% & \\ \hline Indirect Labor & 4.57% & & 4.10% & & 4.76% & & 0.00% & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \begin{tabular}{l} Schedule 2 \\ Manufacturing Overhead \end{tabular} & Year 6 & Year 7 & Year 8 & \begin{tabular}{l} Proforma \\ Year 9 \end{tabular} \\ \hline Appraisal Costs & $175,000 & $156,000 & $127,000 & $0 \\ \hline Depreciation & 340,000 & 340,000 & 340,000 & \\ \hline Indirect Labor & 840,000 & 874,000 & 1,160,000 & \\ \hline Indirect Material & 40,000 & 44,300 & 51,000 & \\ \hline Insurance & 130,000 & 137,000 & 142,000 & \\ \hline Maintenance & 361,000 & 364,000 & 375,000 & \\ \hline Miscellaneous & 40,000 & 29,000 & 33,000 & \\ \hline Overtime (1.6Xregular rate) & 230,000 & 25,000 & 114,270 & \\ \hline Prevention Costs & 320,000 & 332,000 & 350,000 & 0 \\ \hline Rent & 110,000 & 80,000 & 80,000 & \\ \hline Repairs/Replacements in Field & 15,000 & 20,000 & 18,000 & 0 \\ \hline Rework & 80,000 & 77,000 & 85,000 & 0 \\ \hline Scrap & 50,000 & 31,000 & 36,500 & 0 \\ \hline Taxes & 100,000 & 104,000 & 115,000 & \\ \hline Utilities & 210,000 & 220,000 & 238,000 & \\ \hline Total Manufacturing Overhead & $3.041.000 & $2.833,300 & $3,264,770 & $0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \begin{tabular}{l} Schedule 3 \\ Regular Time Direct Labor (DL) \end{tabular} & Year 6 & Year 7 & Year 8 & \begin{tabular}{l} Proforma \\ Year 9 \end{tabular} \\ \hline Hours worked in year & 2,000 & 2,000 & 2,000 & 2,000 \\ \hline Average wage rate & $14.00 & $14.35 & $14.65 & \\ \hline Average wages per DL employee & $28,000 & $28,700 & $29,300 & $0 \\ \hline Plus 28% benefits & $7,840 & $8,036 & $8,204 & $0 \\ \hline Total cost per DL employee & $35,840 & $36,736 & $37,504 & $0 \\ \hline Number of DL employees & 66 & 80 & 87 & 108.50 \\ \hline Number of shifts & 2.00 & 2.42 & 2.64 & 3.29 \\ \hline Total direct labor hours & 132,000 & 160,000 & 174,000 & 217,000 \\ \hline Total direct labor cost & $2,365,440 & $2,938,880 & $3,262,848 & $0 \\ \hline \end{tabular}