Requirement 3: Excel Sheet

Requirement 4 Spreadsheet

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 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 9 10 11 12 13 14 15 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. 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 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 9 10 11 12 13 14 15 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. 3. Refer to the original data (in other words, return cell Q15 to its original value of 0%) and assume the sales mix percentages (as shown in rows 3 and 21) hold constant. a. Using Goal Seek, calculate the total unit sales required to break even. (Hint: Instruct Goal Seek to obtain a net operating income of $0, as shown in cell Q31, by changing the unit sales in cell Q14.) b. What are the dollar sales required to break even? c. What was the company's margin of safety last year? 4. Refer to the original data (in other words, return cell Q14 to its original value of 150,000 units). Assume the sales mix holds constant and the company plans to increase the selling prices of all products by 5%. (Hint: Focus on cell Q16 to input this projection.) a. Using Goal Seek, calculate the total unit sales required to break even. Is your answer greater than, less than, or equal to the answer you obtained in requirement 3a? b. How is the amount in cell B23 calculated? c. Why does the contribution margin ratio shown in cell R29 differ from the corresponding percentage from last year, as shown in cell R9? d. Should the company increase its selling prices by 5% this year? X Answer is complete but not entirely correct. Req Reg 3B Req 3C Req 4A1 Req 4A2 Req 4B Req 40 Req 4D Using Goal Seek, calculate the total unit sales required to break even. (Hint: Instruct Goal Seek to obtain a net operating income of $0, as shown in cell Q31, by changing the unit sales in cell Q14.) Unit sales to break even 106,570 units X Answer is complete but not entirely correct. Req Req 3B Req 30 Req 4A1 Req 4A2 Req 4B Req 4C Req 4D What are the dollar sales required to break even? Dollar sales to break even $ 9,090,909 X X Answer is complete but not entirely correct. Req Req 3B Req 3C Req 4A1 Req 4A2 Req 4B Req 4C Req 4D What was the company's margin of safety last year? Margin of safety last year $ 3,704,091 x X Answer is complete but not entirely correct. Req Req 3B Req 3C Req 4A1 Req 4A2 Req 4B Reg 4C Req 4D Using Goal Seek, calculate the total unit sales required to break even. Unit sales to break even 106,576 X units X Answer is complete but not entirely correct. Req Req 3B Req 3C Req 4A1 Req 4A2 Req 4B 13 Req 40 Req 4D Which of the following statements is true? The answer in Requirement 4a1 greater than the unit sales to break even in requirement 3a because the total fixed expenses did not change and the contribution margin per unit has decreased. is X Answer is complete but not entirely correct. Req Req 3B Req 3C Req 4A1 Req 4A2 Req 4B Req 4C Req 4D How is the amount in cell B23 calculated? x Selling price per unit (Selling price per unit * Change in selling prices) Selling price per unit + (Selling price per unit * Change in selling prices) Selling price per unit * (Selling price per unit * Change in selling prices) Selling price per unit + (Selling price per unit * Change in selling prices) * Answer is complete but not entirely correct. Req Req 3B Reg 3C Req 4A1 Req 4A2 Req 4B 6 Req 4C Req 4D Which of the following statements is true? If the company increases its selling prices by 5%, it will increase profits because the break-even point (in units) at these higher prices is less than the break-even point at the original prices. If the company increases its selling prices by 5%, it will decrease profits even though the break-even point (in units) at these higher prices is less than the break-even point at the original prices. Olf the company increases its selling prices by 5%, the impact on profits will depend on how the price hike affects customer demand. 8 7.500 5% 79.00 $ 33.18 $ 2,000 25 39.00 $ 14.30 $ 9.000 GX GOCO 5 31 ih 15,000 10% 95.00 $ 27.6.15 1,500 15 65.00 $ 29.0 S 19.00 $ 15 S 3.000 2x 44.00 $ 12.40 S 5,000 0 49.00 $ 11.-18 5 * S 29.00 $ 12. $ 8S.DOS 42.90 S 59.00 $ 25.40 $ 19.00 51. 5 Sales VIS Contribution margin Findepenses Net operating income 261.000 6 1165 144450 $ 1.633,500 $ 1,131075 502.425 $ 510 000 $ 2.125.500 5 25520 1.667 500 255,000 $ 468.000 $ 85,500 $3,213,000 $ 2R525 24,00 55,925 $ 729,000 117,000 $ 42,900 74,100 $ 542.500 5 248850 343.650 S 521.000 5 1425,000 $ 223.240 1,164,000 347,750 $ 261,000 $ 619,500 $ 286,700 352,800 $ 97.500 13,500 54,000 $ 132 000 $ 37200 94,900 S 100.0 2.0 38.00 $ 294,200 $ 1.068,000 $125.000 83,29 241,062 R571,936 213, 120$ 326,040 4,223,070 SOCO DE 1.223.070 $ 28.15 $ Projections for This Year Last ycarunt sales Dangent Sales Darsni suling pike Dance in vartabe eres Orange ind perse 150.000 012 042 CAS 1 2 3 4 7 10 11 12 13 14 15 Total Welehtederace OM por Unit 119 Saksi paranta Unt sales Scling priceperunt Varecerunt Contribution margin perunk 10043 1501100 6M IND 29.00 $ 12.06 5 16.059 $ IS $ 44 600 85.00 85.00 $ 42.50 S 42.50 S 10,500 99.00 $ $8.55 20.45 $ 13% 19500 109 $ 85.00 S 24.00 $ 35 3% you 19.00 $ 635 12 65 18% 27.00 119.00 $ 02.00 $ 27.00 $ 24 spoo 29.09 29.00 $ 14.30 $ 24.70 5 1 14 1,500 .. 65.00 $ $ 7500 79.00 $ 33.18 45.52 S 10 10% 15 95.00 $ 77.60 17.40 69.00 $ 30.36 S 35.64 $ 7% 10,500 59.00 $ 25.40 $ 33.GOS 2% SINO 44.00 $ 12.40 31 30$ 88 SOU 49.00 $ 13.48 35.525 1200 59.00 51.83 27.17 36.00 $ $ 201 DONOS 116550 $ 144,450 S Sales variable expenses Learlieutermarain FIRE penses Netoperare 159.500 5 1131,075 502425 5 510000 S 2,125 500S 250.000 255,200 $ $ 268.000 1.567500 95,500 $1,211,000 5 256 26,575 2.484.000 56,925 S $ 220,000 1177005 42.900 429 59250 $ 249.950 w 313.650 5 52100 273,240 347,760 1425,000 5 619,500 1.161,000 266.700 261,000 $ $352,800 352 $ 97500 43500 54.000 132 000 $ 37200 94800 $ 100.0% G7.09 33.04. 74,100 $ 291,000 $ 10.000 5 12.795.000 99,50 741.SGO 5.571930 213 120 $ 326,040 4,223.070 3,000,000 $ 1,79811 S 2R 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total % Weighted-Average CM per Unit 6,000 Last Year: Unit sales Sales mix percentages Selling price per unit Variable expense per unit 9,000 6% 29.00 12.95 150,000 100% 16,500 11% 99.00 68.55 6,000 4% 85.00 19,500 13% 109.00 85.00 4,500 3% 19.00 6.35 27,000 18% 119.00 92.00 3,000 2% 39.00 14.30 7,500 5% 79.00 33.18 9,000 6% 69.00 30.36 15,000 10% 95.00 77.60 10,500 7% 59.00 25.40 1,500 1% 65.00 29.00 3,000 2% 44.00 12.40 12,000 8% 89.00 61.83 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4% 49.00 13.48 $ $ $ $ 42.50 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,633,500 1,131,075 261,000 $ 116,550 144,450 $ 510,000 $ 2,125,500 255,000 1,657,500 255,000 $ 468,000 85,500 28,575 $ 3,213,000 2,484,000 117,000 42,900 74,100 592,500 248,850 343,650 621,000 273,240 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,425,000 1,164,000 619,500 266,700 97,500 43,500 132,000 37,200 100.0% 67.0% 33.0% 502,425 $ $ 56,925 $ 729,000 $ $ $ 347,760 $ 261,000 $ 352,800 $ 54,000 $ 94,800 294,000 $ 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 $ 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 0% 0% 0% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total % Weighted-Average CM per Unit 11% 13% 3% 2% 6% 7% 1% 4% 8% 2% 3,000 100% 150,000 9,000 Sales mix percentages Unit sales Selling price per unit Variable expense per unit Contribution margin per unit 6% 9,000 29.00 12.95 16.05 $ 4% 6,000 85.00 42.50 42.50 1,500 65.00 6,000 49.00 $ $ 69.00 $ $ $ 18% 27,000 119.00 92.00 27.00 $ $ $ $ $ 16,500 99.00 68.55 30.45 44.00 $ $ $ $ 5% 7,500 79.00 33.18 45.82 $ $ $ 19,500 109.00 85.00 24.00 $ $ $ 10% 15,000 95.00 77.60 17.40 4,500 19.00 6.35 12.65 3,000 39.00 14.30 24.70 $ $ $ $ $ 10,500 59.00 25.40 33.60 $ $ $ $ 12,000 89.00 61.83 27.17 $ $ $ $ $ $ $ 30.36 38.64 29.00 36.00 12.40 31.60 $ $ $ 13.48 35.52 $ $ $ $ $ $ $ $ $ $ $ $ Sales Variable expenses Contribution margin 261,000 $ 116,550 144,450 $ 1,633,500 $ 1,131,075 502,425 $ 510,000 255,000 $ 2,125,500 1,657,500 85,500 $ 3,213,000 28,575 2,484,000 117,000 42,900 592,500 $ 248,850 343,650 $ 621,000 273,240 $ 1,425,000 $ 1,164,000 $ 261,000 $ 619,500 266,700 97,500 43,500 132,000 37,200 294,000 80,880 $ 1,068,000 741,960 $ 326,040 100.0% 67.0% $ 255,000 $ 468,000 $ 56,925 $ 729,000 $ 74,100 $ 347,760 352,800 $ 54,000 $ 94,800 $ 213,120 $ 12,795,000 8,571,930 4,223,070 3,000,000 $ 1,223,070 33.0% 28.15 Fixed expenses Net operating income