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Use Excel to complete this exam. Use one spreadsheet with tabs for each question. Label the tabs as Question 1, Question 2, etc. Submit your

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Use Excel to complete this exam. Use one spreadsheet with tabs for each question. Label the tabs as "Question 1," "Question 2, etc. Submit your completed spreadsheet in the appropriate D2L Dropbox by Friday, November 15, 2019. Each question is worth 25 points. 1. Using the information in Cases 6-61 and 6-60 (given below) construct an Excel spreadsheet to compute the operating profit (loss) for the base case and each of the three alternatives.. 6-61 Sensitivity Analysis Using Excel. Refer to the information for Rafting Products, Inc., in Skill-Building Case 60. Prepare an Excel spreadsheet to calculate the operating profit (loss) for the base case and for each of the three scenarios presented in the case. Using the spreadsheet in the Computer Application box in this chapter as a guide, include "data entry" and "sensitivity analysis results" sections, and combine variable cost of goods sold and selling and administrative costs on one line and fixed cost of goods sold and selling and administrative costs on another line. 6-60 Group Activity: Sensitivity Analysis and Decision Making. Rafting Products, Inc., produces inflatable rafts used for river rafting. Sales have grown slowly over the years, and cost increases are causing Rafting Products to incur losses. Financial data for the most recent year are shown. $2,600,000 (= $2,000 x 1,300 units) $1,040,000 (= $800 x 1,300 units) 390,000 (= $300 x 1,300 units) 1,430,000 $1,170,000 Sales Variable costs Cost of goods sold Selling and administrative costs Total variable costs Contribution margin Fixed costs Cost of goods sold Selling and administrative costs Total fixed costs Operating loss $800,000 400,000 1,200,000 ($ 30,000) Members of the management group at Rafting Products arrived at these three possible courses of action to return the company to profitability (each scenario is independent of the others) 1. Increase the sales price for each raft by 10 percent, which will cause a 5 percent drop in sales volume. Although sales volume will drop 5 percent, the group believes the increased sales price will more than offset the drop in rafts sold. 2. Decrease the sales price for each raft by 10 percent, which will cause an 8 percent increase in sales volume. Although the sales price will drop by 10 percent, the group believes an increase in rafts sold will more than offset the sales price reduction. 3. Increase advertising costs by $200,000, which will increase sales volume by 15 percent. Although fixed selling and administrative costs will increase by $200,000, the group believes the increase in rafts sold will more than offset the increase in advertising costs

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