please explain all the steps with the work, fill in the excel sheet.
I U B $ 2 Paste 00 A3 x & fx 8 D F E 1 Cost Behavior 2 Prepare a contribution margin income statement 3 Five Macaws is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical 4 location. Results for last year are shown next: 5 6 Five Macaws Traditional Income Statement (Absorption Costing) For the Year Ended December 31 7 8 9 10 $ 11 12 13 14 15 990,000 673,000 317,000 $ Sales revenue Less: Cost of goods sold Gross profit Less operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Operating income 16 $ 65,500 58,000 17,600 17 141,100 175,900 as 18 $ OV For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight out charges ($19,400), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable of the other operating expenses, 90% were fixed. 19 20 LAB 21 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 22 Instruction tab you will be marked wrong. 23 24 Requirements 25 Prepare Five Macaws' contribution margin income statement for last year. 26 Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted 27 Follow the format shown in Exhibit 6 22 28 29 Savine RC a b 1 Cost Behavior 2 Prepare a contribution margin income statement 3 Five Macaws is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical 4 location. Results for last year are shown next: 5 6 7 Five Macaws Traditional Income Statement (Absorption Costing) For the Year Ended December 31 8 9 10 $ 11 990,000 673,000 317,000 $ 12 13 14 15 Sales revenue Less: Cost of goods sold Gross profit Less operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Operating income 16 $ 65,500 58,000 17,600 17 eas 18 10 $ 141,100 175,900 For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19,400), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable of the other operating expenses, 90% were fixed. 19 20 LAB 21 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 22 Instruction tab you will be marked wrong. 24 Requirements 25 Prepare Five Macaws' contribution margin income statement for last year 26 Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted 27 b Follow the format shown in Exhibit 6-22 28 29 Saving & Submitting Solution 30 1
