Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required: 1. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect on
Required: 1. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20 percent increase. Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,880 units.) 2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand. Complete this question by entering your answers in the tabs below. Required: 1. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20 percent increase. Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,880 units.) 2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand. Complete this question by entering your answers in the tabs below. Required: 1. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20 percent increase. Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,880 units.) 2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect on operating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20 percent increase. Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,880 units.) (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567=15.67% ).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started