Required Information [The following Information applies to the questions displayed below) Donaldson Company's contribution format Income statement for the most recent month is shown below. Sales Variable expenses Contribution margin Fixed expenses Net operating Incone Total $500,000 300,000 200,000 180, cee $ 20,00 Per Unit $12.50 7.50 $5.00 The company sold 40,000 units in its most recent month and its relevant range of production is 30,000 to 50,000 units. Click here to download the Excel template, which you will use to answer the questions that follow Click here for bredtutorial on Goal Seek in Excel Click here for a brief tortalon SOLVERIN Excel Click here for a brofortalon Charts in Excel Required: 1. In the Excel file a. How is the contribution margin shown in cell B14 being calculated? b. How is the net operating income shown in cell B16 being calculated? c. How is the net profit margin percentage shown in cell B18 being calculated? d. How is the contribution margin ratio shown in cell D14 being calculated? e. How is the break even sales shown in cel G12 being calculated? Will the amount shown in cell G12 change if unit sales change and all else holds constant? How is the margin of safety percentage in cell G14 being calculated? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1c Reg 10 Req 1E Req 17 How is the contribution margin shown in cell B14 being calculated? Sales (cell B12) - Variable expenses (cell B13) Sales (cell 812) + Variable expenses (cell B13) Sales (cell B12) * Variable expenses (cell B13) Sales (cell B12) - Variable expenses (cell 813) ho WA Req 18> Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 10 Req 1D Reg 1E Req 1F How is the net operating income shown in cell B16 being calculated? Contribution margin (cell B14) - Fixed expenses (cell B15) Contribution margin (cell B14) + Fixed expenses (cell B15) Contribution margin (cell B14) x Fixed expenses (cell B15) Contribution margin (cell B14) - Fixed expenses (cell B15) Req 1A Reg 1B Reg 10 Req 10 Reg 15 Reg 17 How is the net profit margin percentage shown in cell B18 being calculated? Net operating income (cell B16) - Sales (cell B12) Net operating income (cell B16) + Sales (cell 812) Net operating income (cell B16) X Sales (cell B12) Net operating income (cell B16) + Sales (cell B12) Reg 1A Req 18 Req 10 Reg 1D Req 1E Reg 17 How is the contribution margin ratio shown in cell D14 being calculated? Contribution margin per unit (cell C14) - Selling price per unit (cell C12) Contribution margin per unit (cell C14) + Selling price per unit (cell 012) Contribution margin per unit (cell C14) Selling price per unit (cell C12) Contribution margin per unit (cell C14) - Selling price per unit (cell C12) Complete this question by entering your answers in the tabs below. Req 1A Req 10 Req 10 Req 10 Reg 1E Reg 17 How is the break-even sales shown in cell G12 being calculated? Will the amount shown in cell G12 change if unit sales change and all else holds constant? 1e-1. Fored expenses (cell B15) - Contribution margin ratio (cell D14) Fixed expenses (cell B15) + Contribution margin ratio (cell D14) Foed expenses (cell B15) Contribution margin ratio (cell D14) Fixed expenses (cell B15) - Contribution margin ratio (cell D14) te-2. Will the amount shown in cel G12 change it unit sales change and all else holds constant? No, the amount will stay constant Yes, the amount will change Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Req 10 Req 1E Reg 1F How is the margin of safety percentage in cell G14 being calculated? Margin of safety in dollars (cell G13) - Actual sales (cell G11) Margin of safety in dollars (cell G13) + Actual sales (cell G11) Margin of safety in dollars (cell G13) Actual sales (cell G11) Margin of safety in dollars (cell G13) + Actual sales (cell G11)
