The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a sixty-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on shipping weight, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. You will also need to use Excel's RSQ function to determine what is the cost driver for those costs that are variable and/or mixed. These costs may be dependent on shipping weight, unit sales, or distance shipped. B. Once the cost driver is determined for each of the mixed or variable costs you will need to develop the cost formula using the Excel SLOPE and INTERCEPT functions. It can be included in same area you used for requirement "A". Regarding selling price; this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount. C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; weight shipped: 97,000 pounds; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month. Next, construct a Traditional Income Statement for the upcoming month. Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. D. While the Coco Lamela Company is based in the USA, and conducts business in dollars (USD), its two principle investors, Lewis & Levy, are based in England. To make the affairs of the company relatable to its investors Coco Lamela presents its financial information both in USD and British pounds (GBP) http://www.xe.com/currencytables/ Use the October 7, 2019 close rate. Once you have pasted the factor into your spreadsheet use the ROUND function to limit the value to the fourth decimal place. Using the pro forma income statements that you constructed for requirement C as your input, recreate those statements in British pounds (GBP). You must use Excel for this case. All non-input cells will either reference another cell or be a calculated (formula) cell. Format all the cells as "accounting" and the initial sales amount on the income statements as a "currency". Any variable cost elements that you discover is to be displayed to three decimal places, and any fixed cost element is to be shown as a whole number. The amounts in the income statements shall be displayed in whole numbers. The purpose of this case is to reinforce the concept of cost behavior, and to give you some Excel experience. Remember that readability and neatness count when you create your solution. Whether you use a single spreadsheet or multiple sheets is up to you. Define the area that will contain the input data that is given in items C and D. Make this area obvious and easy to locate. Use named ranges in your data section for the cost drivers and various costs whenever possible. This assignment is worth twenty-five points. While others may give you verbal assistance, this must be your own work Make sure to disclose who you helped, who helped you, or that you solved this completely alone. 1 2 5 89 10 11 12 Month Possible Cost Drivers: Distance Shipped (miles) Weight Shipped (pounds) Units Sold 65,000 35,000 25,000 37,500 450,000 70,000 38,000 375,000 72,580 34,000 550,000 85,000 58,000 510,900 76,000 55,000 562,000 58,900 29,000 176,000 8 4,300 33,000 476,000 90,000 36,000 980,000 54,000 59,000 784,000 62,000 56,000 356,000 98,000 50,000 COSTS (all in USD) Cost of Goods Advertising 945,000 154,850 1,012,500 154,500 1,026,000 154,332 918,000 154,080 1,566,000 157,380 1,485,000 156,600 783,000 153,480 891,000 154,630 972,000 154,077 1,593,000 157,490 1,512,000 156,720 1,350,000 155,859 Selling & Commissions Admin. Salaries Packaging Shipping costs 185,000 120,000 230,000 214,300 195,000 120,000 250,000 95,250 202,400 120,000 260,000 230,400 1 86,000 120,000 220,000 234,313 283,000 120,000 340,000 279,950 265,000 120,000 330,000 251,265 166,000 130,000 200,000 2 03,033 182,000 130,000 210,000 259,171 177,000 130,000 240,000 291,100 245,000 130,000 380,000 209,380 273,000 130,000 350,000 223,340 257,000 130,000 290,000 308,860 The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a sixty-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on shipping weight, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. You will also need to use Excel's RSQ function to determine what is the cost driver for those costs that are variable and/or mixed. These costs may be dependent on shipping weight, unit sales, or distance shipped. B. Once the cost driver is determined for each of the mixed or variable costs you will need to develop the cost formula using the Excel SLOPE and INTERCEPT functions. It can be included in same area you used for requirement "A". Regarding selling price; this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount. C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; weight shipped: 97,000 pounds; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month. Next, construct a Traditional Income Statement for the upcoming month. Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. D. While the Coco Lamela Company is based in the USA, and conducts business in dollars (USD), its two principle investors, Lewis & Levy, are based in England. To make the affairs of the company relatable to its investors Coco Lamela presents its financial information both in USD and British pounds (GBP) http://www.xe.com/currencytables/ Use the October 7, 2019 close rate. Once you have pasted the factor into your spreadsheet use the ROUND function to limit the value to the fourth decimal place. Using the pro forma income statements that you constructed for requirement C as your input, recreate those statements in British pounds (GBP). You must use Excel for this case. All non-input cells will either reference another cell or be a calculated (formula) cell. Format all the cells as "accounting" and the initial sales amount on the income statements as a "currency". Any variable cost elements that you discover is to be displayed to three decimal places, and any fixed cost element is to be shown as a whole number. The amounts in the income statements shall be displayed in whole numbers. The purpose of this case is to reinforce the concept of cost behavior, and to give you some Excel experience. Remember that readability and neatness count when you create your solution. Whether you use a single spreadsheet or multiple sheets is up to you. Define the area that will contain the input data that is given in items C and D. Make this area obvious and easy to locate. Use named ranges in your data section for the cost drivers and various costs whenever possible. This assignment is worth twenty-five points. While others may give you verbal assistance, this must be your own work Make sure to disclose who you helped, who helped you, or that you solved this completely alone. 1 2 5 89 10 11 12 Month Possible Cost Drivers: Distance Shipped (miles) Weight Shipped (pounds) Units Sold 65,000 35,000 25,000 37,500 450,000 70,000 38,000 375,000 72,580 34,000 550,000 85,000 58,000 510,900 76,000 55,000 562,000 58,900 29,000 176,000 8 4,300 33,000 476,000 90,000 36,000 980,000 54,000 59,000 784,000 62,000 56,000 356,000 98,000 50,000 COSTS (all in USD) Cost of Goods Advertising 945,000 154,850 1,012,500 154,500 1,026,000 154,332 918,000 154,080 1,566,000 157,380 1,485,000 156,600 783,000 153,480 891,000 154,630 972,000 154,077 1,593,000 157,490 1,512,000 156,720 1,350,000 155,859 Selling & Commissions Admin. Salaries Packaging Shipping costs 185,000 120,000 230,000 214,300 195,000 120,000 250,000 95,250 202,400 120,000 260,000 230,400 1 86,000 120,000 220,000 234,313 283,000 120,000 340,000 279,950 265,000 120,000 330,000 251,265 166,000 130,000 200,000 2 03,033 182,000 130,000 210,000 259,171 177,000 130,000 240,000 291,100 245,000 130,000 380,000 209,380 273,000 130,000 350,000 223,340 257,000 130,000 290,000 308,860