please show me the work in the format of the last spreadsheet for the actual lab i need to complete if you could show me the workings seperatly or incorporated so i can better understand that would be great but not neccessary.
Lab #9 involves the analysis of a company's income statements for their three divisions to determine whether an underperforming division should be eliminated. Within this lab you are provided with instructions that include the assumptions to be used in working through the analysis of this decision, along with an Excel document that will be used to prepare your analysis and recommendations. There are three decisions to be made whether the company should keep the division at the current time, whether the company should keep the division if sales are increased, and whether the company should keep the division with increased sales or sublease the facility. Pay close attention to which items are relevant to this decision, only focusing on those that will be different between the alternatives being considered. Instructions: ACC 214 - Lab #9 for Chapter 23 The Jones-Pitt Company has 3 separate branches (divisions): Each branch (division) operates its own facility. The administrative offices are located in a separate building, and administrative-facility level costs are allocated among branches A, B and C. The branch income statements are presented for the year 2019: Branch C has experienced a Net Loss. Branch C has suffered losses in recent years, and the company expects to continue to operate at a loss. Income Statements by Branch: (Note: no formulas have been used to present the data.) Division Division Division A B C 2,000,000 1,600,000 1,710,000 Sales Less: Cost of Goods Sold Unit-level Manufacturing Costs Rent on Manufacturing Facility Gross Margin Less: Operating Expenses Unit-Level Selling and Admin. Expenses Division-Level Fixed Selling and Admin. Expenses Administrative Facility-Level Costs (1,100,000) (580,000) (900,000) (240,000) (220,000) (450,000) 660,000 800,000 360,000 (60,000) (45,000) (150,000) (140,000) (125,000) (240,000) (80,000) (80.000) (80.000) Net Income (loss) 380,000 550.000 (110,000) Requirements - using the provided Excel file: a. Based on the information above, recommend whether Division C should be eliminated. Support your answer by preparing company-wide income statements - one with Division C and one without Division C. b. During 2019, Division C produced and sold 30,000 units of product. Would your recommendation in part (a.) change if sales and production increase to 45,000 units? Support your answer by comparing differential revenue and avoidable cost for Division C, assuming that 45,000 units are sold. c. Suppose that the company could sublease Division C's manufacturing facility for $910,000. Would you operate the division at a production and sales volume of 45,000 units or would you sublease? Support your answer with appropriate computations using Excel. Note: you must show supporting schedules/calculations on the Excel worksheet. Lab #9 for Chapter 23 Template Name: Use this spreadsheet to prepare solutions for the questions on the instructions file (Word). Jones-Pitt Company Income Statement by Branch: Division A Division B Division C 2,000,000 1,600,000 1,710,000 (1.100,000) (580,000) (900,000) (240,000) (220,000) (450,000) 660,000 800,000 360,000 4 Sales Less: Cost of Goods Sold Unit-level Manufacturing Costs Renton Manufacturing Facility 1 2 Gross Margin 3 Less: Operating Expenses Unit-Level Selling and Admin. Expenses 5 Division-Level Fixed Selling and Admin. Expenses 6 Administrative Facility-Level Costs 7 8 Net Income (loss) 9 (Note: no formulas have been used to present the data.) 20 21 Prepare your answers to parts a, b and c on the spreadsheet below: 22 23 24 25 26 (60,000) (140,000) (80,000) (45,000) (150,000) (125,000) (240,000) (80,000) (80,000) 380,000 550,000 (110,000)
