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Second photo is for number 8 on bottom of 1st page. considering a change to its cost structure. Below is the data relating to the
Second photo is for number 8 on bottom of 1st page.
considering a change to its cost structure. Below is the data relating to the current structure the Current Structure Proposed Structure Unit Sales 20.000 Unt Sales Sales PricePerUnit $ 100 Sales PricePerUnk Total Variable costs 20,000 $ 400.000 Total Variable costs Total Fed Costs $ 300,000 Total Red Cous L) Prepare a CVP Statement for each cost structure. Incorporate cell references and formulas where indicated. You can instantly create the Statement for the Proposed Structure, by copying and pasting your completed CVP State wherren Structure. Make sure all highlighted a are completed. Try to avoid the headings when copying. You want to keep the Proposed Structure heading CVP Statement. Current Structure CVP Statement Proposed Structure Total Per Unit of Sales Type a Label Here formule cell reference formula Type a Label Mere cell reference formula formula Type a Label Here Type a Label Mare cel reference Type a Label Here 2) Use the Contribution Margin technique to calculate the releven point in unit and doors from one section to the next. Be careful with the headings Breakeven Units - Current Structure were you can save by copying Breakeven Units - Proposed Structure cell reference formula formula cell reference cell reference Breakeven Sales Dollars Current Structure Breakeven Sales Dollars-Proposed Structure formula formula 3.) Compare the Net Operating income and Breakeven calculations for both scenarios. What happened to the breakeven point and why? Type response here 4 Compute the Degree of Operating Leverage for both scenarios. Sovetim Degree of Operating Leverage. Current Structure cell reference cell reference formula 5. Use the Degree of Operating Leverage to determine how a 10% increase in sales will impact Net Income Degree of Operating Leverage LABEL Net Income Impact Old Net Income LABEL Current cell reference cellreference formula cell reference formula Proposal cell reference reference formula cell reference focale New Net Income 6.) Save and print (face-to-face class) 7.) Copy ROWS 1-17 of this spreadsheet tab ORIGINAL") to the Revisions" tab. Use the "Revision predsheet to prove your calculation from instructions of the Originalspreadsheet by increasing the sales volume in the date section (gray shaded are by 10. Remember to change anything else in the data section which would be affected by a change in sales volume. You should not make any changes below rowe 6) Save and print face-to-face class or upload to Blackboard online class). is considering a change to its cost structure. Below is the data relating to the current structure as well as the wonded change Current Structure Proposed Structure Unit Sales 20,000 Unit Sales Sales Price Per Unit 100 Sales Price Per Unit Total Variable Costs (based on 20,000 units) $ 400,000 Total Variable Costs (based on 20.000 units) Total Fixed Costs $ 900,000 Total Fixed Costs 1.) Prepare a CVP Statement for each cost structure. Incorporate cell references and formulas where indicated. You can instantly create Statement for the Proposed Structure, by copying and posting your completed CVP Statement for the Current Structure. Make sure all nigang are completed. Try to avoid the headings when copying. You want to keep the Proposed Structure heading. CVP Statement - Current Structure CVP Statement - Proposed Structure 20,000 $ 100 $ 700,000 S600.000 he Current Structure. Make sure all highlighted areas Total Type a Label Here Type a Label Here Type a Label Here Type a Label Here Type a Label Here formula cell reference formula cell reference Per Unit cell reference formula formula % of Sales formula formula formula formula You can setine anain by copyingStep by Step Solution
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