"The objective is for the student to become familiar with the cost-volume-profit analysis as a tool used for decision making. Review the ?Consolidated Statements of Income? In Hershey?s 2007 annual report (ignore all figures below net income, such as, per share information). Using the spreadsheet below fill in requirements 1 through 4 in the spreadsheet using the following data: 1. Units Sold a. 2005 ? 100,000,000 units b. 2006 ? 100,400,000 units c. 2007 ? 200,000,000 units 2. Variable Manufacturing Costs Percentage ? 45% of Cost of Sales 3. Variable Marketing Costs Percentage ? 15% of Cost of Sales 4. Fixed Costs Percentage ? 40% of Cost of Sales LENGTH: spreadsheet The following items will be assessed in particular: I. Instructions a. Double Click on ?Requirement 1? on the spreadsheet b. Scroll down through the spreadsheet; you should see four (4) requirements c. Fill in the spreadsheet with your analysis answers"

Requirement 1 The Hershey Company Contribution Margin Operating Income Statements 2007 2006 2005 Units Sold Net Sales Variable Cost of Sales: Variable Manufacturing Costs Variable Marketing Costs Total variable costs Contribution Margin Fixed Costs Fixed Cost of Sales Fixed Marketing & Administration Costs Interest Expense Total fixed costs Operating Income Average Tax Rate Requirement 2 Contribution margin percentage Breakeven Net Sales Breakeven quantity (units) Sales Price Per Unit Requirement 3 Margin of safety (in units) Requirement 4 Units sold Net Sales Contribution margin Total fixed costs Operating income Tax rate Net income What if ???? 190,000,000 101,000,000 95,000,000