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 3 4 5 6 7 8 9 10 11 12 13 14 15 Unit Sales 9,000 16,500 6,000 19,500 4,500 27,000 3,000 7,500 9,000 15,000 10,500 1,500 3,000 6,000 12,000 150,000 Selling Price per Unit $ 29 $ 99 $ 85 $ 109 $ 19 $119 $ 39 $ 79 $ 69 $ 95 $ 59 $ 65 $ 44 $ 49 $ 89 Variable Cost per Unit $12.95 $68.55 $42.50 $ 85.00 $ 6.35 $ 92.00 $14.30 $33.18 $30.36 $77.60 $25.40 $29.00 $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. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on Goal Seek in Excel. Click here for a a brief tutorial on Charts in Excel. Click here for a brief tutorial on Conditional Formatting in Excel. Required: 1. To confirm your understanding of the spreadsheet's design, answer the following questions with respect to last year: a. How is the percentage in cell B3 calculated? Why do you think specifying the sales mix percentages for all products is important? b. How are the amounts in cells B7, B8, and B9 calculated? c. How are the amounts in cells Q7, Q8, and Q9 calculated? d. How is the amount in cell Q11 calculated? e. How are the percentages in cells R8 and R9 calculated? f. How is the amount in cell S9 calculated? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Req 1E Req 1F How is the percentage in cell B3 calculated? Why do you think specifying the sales mix percentages for all products is important? 1a-1. O Product 1's unit sales (cell B2) - Total unit sales (cell Q2) O Product 1's unit sales (cell B2) + Total unit sales (cell Q2) O Product 1's unit sales (cell B2) * Total unit sales (cell Q2) Product 1's unit sales (cell B2) - Total unit sales (cell Q2) 1a-2. Why do you think specifying the sales mix percentages for all products is important? They are held constant when performing break-even and target profit calculations. They are allowed to vary when performing break-even and target profit calculations. 5 5 6 7 8 9 9 10 11 12 13 14 15 Tatal Weighted-Average CM per Unit Last Year: Selling price per unit Variable expense per unit $ $ 19.00 $ 5.35 $ 119.00 $ 92.00 $ 39.00 $ 14.30 $ 79.00 $ 33.18 $ 69.00 5 30.36 $ 95.00 $ 77.50 $ 59.00 $ 25.40 $ 65.00 $ 29.00 5 44.00 $ 12.40 $ 49.00 $ 13.48 $ 89.00 61.83 $ Sales Variable expenses Contribution margin Fixed expenses Net operating income 85,500 $3,213,000 $ 117,000 $ 28.575 2,484,000 42,900 56,925 $ 729,000 $ 74,100 $ 592,500 $ 248,850 343,650 $ 621,000 5 1,425,000 $ 273,240 1,164,000 347,760 $ 261,000 $ 619,500 $ 266,700 352,800 $ 97,500 5 43,500 54,000 $ 132,000 $ 37,200 94,00 $ 294,000 $ 1,068,000 $ 12,795,000 80,880 741,960 8,571,930 213,120 $ 326,040 4,223,070 3,000,000 $ 1,223,070 100.0% 67.0% 33.0% $ 28.15 Projections for This Year: Last year unit sales Change in unit sales Change in selling prices Change in variable expenses Change in fixed expenses 150.000 08 0% 0% 0% 5 6 7 8 9 10 11 12 13 14 15 Total Weighted Average CM per Unit Sales mix percentages Unit salas Selling price per unit Variable expense per unit Contribution margin per unit 100% 150,000 3% 4,500 19.00 $ 6.39 $ 12.65 $ $ $ $ 18% 27,000 119.00 $ $ 92.00 S 27.00 $ 2% 3,000 39.00 $ 14.30 $ 24.70 $ 5% 7,500 79.00 $ 33.18 $ 45.82 $ 6% 9,000 69.00 $ 30.36 $ 38.64 $ 10% 15,000 95.00 $ 77.60 $ 17.40 $ 7% 10,500 59.00 $ 25.40 $ 33.60 $ 1% 1,500 65.00 $ $ 29.00 $ 36.00 $ 2% 3,000 44.00 $ 12.40 $ 31.60 $ 8% 12,000 89.00 4% 6,000 49.00 $ 13.48$ 35.52 $ 61.83 27.17 $ Sales Variable expenses Contribution margin Fixed expenses Net Operating income 85,500 $ 3,213,000 $ 28,575 2.484.000 56,925 $ 729,000 $ 117,000 $ 42,900 74,100 $ 592,500 $ 248,850 621,000 $ 1,425,000 $ 273,240 1,154,000 347,760 $ 261,000 $ 619,500 $ 266,700 352,800 $ 97,500 $ 43,500 54,000 $ 132,000 $ 37,200 94,900 $ 100.0% 67.0% 33.0% $ 294,000 $ 1,068,000 $ 12,795,000 80,880 741,960 8,571,930 213,120 $ 326,040 4,223,070 3,000,000 $ 1,223,070 343,650 $ 28.15 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 3 4 5 6 7 8 9 10 11 12 13 14 15 Unit Sales 9,000 16,500 6,000 19,500 4,500 27,000 3,000 7,500 9,000 15,000 10,500 1,500 3,000 6,000 12,000 150,000 Selling Price per Unit $ 29 $ 99 $ 85 $ 109 $ 19 $119 $ 39 $ 79 $ 69 $ 95 $ 59 $ 65 $ 44 $ 49 $ 89 Variable Cost per Unit $12.95 $68.55 $42.50 $ 85.00 $ 6.35 $ 92.00 $14.30 $33.18 $30.36 $77.60 $25.40 $29.00 $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. Click here to download the Excel template, which you will use to answer the questions that follow. Click here for a brief tutorial on Goal Seek in Excel. Click here for a a brief tutorial on Charts in Excel. Click here for a brief tutorial on Conditional Formatting in Excel. Required: 1. To confirm your understanding of the spreadsheet's design, answer the following questions with respect to last year: a. How is the percentage in cell B3 calculated? Why do you think specifying the sales mix percentages for all products is important? b. How are the amounts in cells B7, B8, and B9 calculated? c. How are the amounts in cells Q7, Q8, and Q9 calculated? d. How is the amount in cell Q11 calculated? e. How are the percentages in cells R8 and R9 calculated? f. How is the amount in cell S9 calculated? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Req 1E Req 1F How is the percentage in cell B3 calculated? Why do you think specifying the sales mix percentages for all products is important? 1a-1. O Product 1's unit sales (cell B2) - Total unit sales (cell Q2) O Product 1's unit sales (cell B2) + Total unit sales (cell Q2) O Product 1's unit sales (cell B2) * Total unit sales (cell Q2) Product 1's unit sales (cell B2) - Total unit sales (cell Q2) 1a-2. Why do you think specifying the sales mix percentages for all products is important? They are held constant when performing break-even and target profit calculations. They are allowed to vary when performing break-even and target profit calculations. 5 5 6 7 8 9 9 10 11 12 13 14 15 Tatal Weighted-Average CM per Unit Last Year: Selling price per unit Variable expense per unit $ $ 19.00 $ 5.35 $ 119.00 $ 92.00 $ 39.00 $ 14.30 $ 79.00 $ 33.18 $ 69.00 5 30.36 $ 95.00 $ 77.50 $ 59.00 $ 25.40 $ 65.00 $ 29.00 5 44.00 $ 12.40 $ 49.00 $ 13.48 $ 89.00 61.83 $ Sales Variable expenses Contribution margin Fixed expenses Net operating income 85,500 $3,213,000 $ 117,000 $ 28.575 2,484,000 42,900 56,925 $ 729,000 $ 74,100 $ 592,500 $ 248,850 343,650 $ 621,000 5 1,425,000 $ 273,240 1,164,000 347,760 $ 261,000 $ 619,500 $ 266,700 352,800 $ 97,500 5 43,500 54,000 $ 132,000 $ 37,200 94,00 $ 294,000 $ 1,068,000 $ 12,795,000 80,880 741,960 8,571,930 213,120 $ 326,040 4,223,070 3,000,000 $ 1,223,070 100.0% 67.0% 33.0% $ 28.15 Projections for This Year: Last year unit sales Change in unit sales Change in selling prices Change in variable expenses Change in fixed expenses 150.000 08 0% 0% 0% 5 6 7 8 9 10 11 12 13 14 15 Total Weighted Average CM per Unit Sales mix percentages Unit salas Selling price per unit Variable expense per unit Contribution margin per unit 100% 150,000 3% 4,500 19.00 $ 6.39 $ 12.65 $ $ $ $ 18% 27,000 119.00 $ $ 92.00 S 27.00 $ 2% 3,000 39.00 $ 14.30 $ 24.70 $ 5% 7,500 79.00 $ 33.18 $ 45.82 $ 6% 9,000 69.00 $ 30.36 $ 38.64 $ 10% 15,000 95.00 $ 77.60 $ 17.40 $ 7% 10,500 59.00 $ 25.40 $ 33.60 $ 1% 1,500 65.00 $ $ 29.00 $ 36.00 $ 2% 3,000 44.00 $ 12.40 $ 31.60 $ 8% 12,000 89.00 4% 6,000 49.00 $ 13.48$ 35.52 $ 61.83 27.17 $ Sales Variable expenses Contribution margin Fixed expenses Net Operating income 85,500 $ 3,213,000 $ 28,575 2.484.000 56,925 $ 729,000 $ 117,000 $ 42,900 74,100 $ 592,500 $ 248,850 621,000 $ 1,425,000 $ 273,240 1,154,000 347,760 $ 261,000 $ 619,500 $ 266,700 352,800 $ 97,500 $ 43,500 54,000 $ 132,000 $ 37,200 94,900 $ 100.0% 67.0% 33.0% $ 294,000 $ 1,068,000 $ 12,795,000 80,880 741,960 8,571,930 213,120 $ 326,040 4,223,070 3,000,000 $ 1,223,070 343,650 $ 28.15