Siwa Company makes and sells a decorative ceramic statue. Each statue costs $50 to manufacture and sells 2 for $75. Siwa spends $3 to ship the statue to customers and pays salespersons a $2 commission for each statue sold. The remaining annual expenses of operation are administrative salaries, $70,000; advertising, 3 $20,000; and rent, $30,000. Siwa plans to sell 9,000 statues in the coming year. 4 5 Required Complete the spreadsheet to calculate operating leverage. Place formulas in the spreadsheet to allow changes to any of the preceding information to be automatically reflected in the income statement and 6 operating leverage. 7 (Use cell referencing to select account values. If nothing belongs in a cell, leave it blank.) 8 9 Spreadsheet Tip (Ungraded) You can explore the power of formulas by copying cells A2:M25 into the scratchpad area below. There you will be able to modify the given information (currently in cells J2:M3) and see the resulting 10 changes in the income statement and operating leverage. 11 12 13 Sales revenue 14 Variable expenses Contribution Margin Format Income Statement $50 $75 $3 $2 $70,000 $20,000 $30,000 9,000 15 Cost of goods sold 16 Sales commissions 17 Shipping expenses 18 Contribution margin: 19 Fixed expenses 20 21 221 23 24 Administrative salaries Advertising expense Rent expense Net Income 25 Operating Leverage 26