Required information Chapter 6: Applying Excel Excel Worksheet (Part 1 of 2) (Algo) Step 1: Download the Applying Excel form located on the left-hand side under les If you have trouble, the file is also located in D2L under Course Files and Resources Step 2: Then entet formulas in all cells that contain question marks. For example, in cel 813 enter the formula 85. Aner entering formulas in all the cells that contained question marks, verify that the dollar amounts match the example in the text Step 3: Check your worksheet by changing the fixed expenses to $270,000. your worksheet is operating properly, the degree of operating leverage should be 10. If you do not get this answer find the errors in your worksheet and correct them. Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel MON 3 Data Unit salos 5. Selling price per unit Variable expenses per unit 10,000 units $ 70 per unit $ 42 per $ 252.000 Fixed expenses If your formulas are correct, you should get the correct answers to the following questions What is the break-even in dollar sales? Break-even in dollar sales What is the margin of safety percentage? Margin of safety percentage What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Using the degree of operating leverage and without changing anything in your worksheet calculate the percentage change in net operating incomunitas increase by 20% Percentage increase in net operating Income Required information 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 B 1 Chapter 6: Applying Excel 2 3 Data 4 Unit sales 5 Selling price per unit 6 7 Variable expenses per unit 12,000 units $ 70 per unit $ 42 por unit $ 252.000 Fixed expenses a w What is net operating Income? (Negative amount should be indicated by a minus sign) Net operating income (055) b) By what percentage did the net operating income increase? Percentage increase in net operating Income 5. Thad Morgan, a motorcycle enthusiast, 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 $10,000 and at that price. Thad estimates 200 units would be sold each you. The variable cost to produce and sell the cycles would be $7,500 per unit. The annual fixed cost would be $375,000 a. What is the break-even in unit sales? Break-even in unit sales b. What is the margin of safety in dollars? Margin of safety in dollars What is the degree of operating leverage? (Round your answer to 2 decimal places) Degree of operating leverage That is worried about the clinic Rumors circulating that other retro hands of cuci materived. If (b) By what percentage did the net operating income increase? Percentage increase in net operating Income % 5. Thad Morgan, a motorcycle enthusiast, 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 $10,000 and at that price, Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $7.500 per unit. The annual fixed cost would be $375,000 aWhat is the break-even in unit sales? Break even in unit sales b. What is the margin of safety in dollars? Margin of safety in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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 $8.500 to compete effectively in the event, Thad would also reduce flored expenses to $293,000 by reducing advertising expenses, but he still hopes to sel 200 units per year d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign) Net operating income loss)
