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please use excel formulas and show the formulas applied in notes. thanks Required information Chapter 4: Applying Excel (Algo) [LO3, LO5, LO7, LO8] The Chapter
please use excel formulas and show the formulas applied in notes. thanks
Required information Chapter 4: Applying Excel (Algo) [LO3, LO5, LO7, LO8] The Chapter 4 Form worksheet is to be used to create your own worksheet version of the Review in the text. Chapter 4: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo) Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. 10. If you do not get this answer, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2. 2. Change all of the numbers 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 break-even in dollar sales? 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: (a) What is net operating income? (Negative amount should be indiceted by a minus sign.) (b) By what percentage did the net operating income increase? (b) What is the margin of safety percentage? (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. 5. Thad Morgan, a motorcycle enthuslast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $19,000 and at that price, Thad estimates 600 units would be sold each year. The variable cost to produce and sell the cycles would be $13,300 per unit. The annual flxed cost would be $1,710,000. a. What is the break-even in unit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $14,300 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,334,000 by reducing advertising expenses, but he still hopes to sell 600 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.)Step by Step Solution
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