Required Information Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following Information from last year Product 1 2 Unit Sales 9, eee 16,500 6, de 19,5ee 4. See 4 5 6 7 B 9 18 11 12 13 14 27,000 3,000 7,500 9,000 15,000 1e, see 1,500 3,000 5,000 12.ee 150,00 Selling Price per unit $ 29 $ 99 $85 5109 $ 19 $119 $ 39 $ 79 5 69 5.95 559 5 65 5 44 5.49 589 Variable Cost per Unit $12.95 $68.55 $42.50 585.ee 56.35 $92.ee $14.30 533.18 538.36 $77.60 $25.40 529.00 $12.40 $13.48 $61.83 Last year, Lyndia's total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year 6. Assume the company believes it can increase profits by shifting the sales mix away from products with the highest selling prices and toward the products with the highest contribution margins per unit. To accomplish this goal, the company plans to begin paying sales commissions based on total contribution margin rather than total sales. It also plans to adjust its advertising expenditures to better support the new sales mix strategy. The company hopes these actions will increase the sales mix percentages of the products with the four highest contribution margins per unit by 2% per product. The company also expects a 2% drop in the sales mix percentages of the four products with the highest selling prices. (Hint: Before proceeding, go to row 21 of the spreadsheet and input the 2% Increase or decrease for each of the eight affected products, using Conditional Formatting) a. If the company's sales mix shifts as just described and it sells a total of 150,000 units, what would be the projected sales for this year? How does this amount compare to the sales from last year? b. If the company's sales mix shifts as just described and it sells a total of 150,000 units, what net operating income will it earn this year? How does the projected net operating Income for this year compare to the sales from last year? c. Why does the contribution margin ratto shown in cell R29 differ from the contribution margin ratio shown in cell R9? Complete this question by entering your answers in the tabs below. Reg A1 Req6A2 Reg 681 Req6B2 Reg 6 If the company's sales me shifts as just described and it sells a total of 150,000 units, what would be the projected sales for this year? Projected for this year Reg GA2 > Complete this question by entering your answers in the tabs below. Req 6A1 Reg 6A2 Req 6B1 Req 682 Reg 6C How do this year's projected sales compare to last year's sales? This year's projected sales are Last year's sales Req 6C Req 6A1 Req6A2 Reg 681 Req 6B2 If the company's sales mix shifts as just described and it sells a total of 150,000 units, what net operating income will it earn this year? Net operating income ( Req6A2 Req6B2) Complete this question by entering your answers in the tabs below. Reg 641 Reg 6A2 Reg 681 Req 6B2 Reg 6C How do this year's projected net operating income compare to last year's net operating income? This year's projected net operating income is last year's net operating income. Complete this question by entering your answers in the tabs below. Req 6A1 Req 6A2 Reg 681 Req 6B2 Req 6C Why does the contribution margin ratio shown in cell R29 differ from the contribution margin ratio shown in cell R9? The sales mix has shifted to products with the highest selling prices per unit The sales mix has shifted to products with the highest contribution margins per unit.
