Variable and Absorption Costing using Excel's SUM and Basic Math Functions Addison, Inc makes a single product, an Indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the variable costing approach vs. the absorption costing report Use the information included in the Excel Simulation and the Excel functions described below to complete the task Cell Reference: Allows you to refer to data from another cell in the worksheet From the Excel Simulation below, if in a blank cell *=83" was entered the formula would output the result from cell B3, or 420 in this example Bosic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply), and/(forward stash to divide). From the Excel Simulation below. it in a blank cell-B15-816" was entered the formula would add the values from those cells and output the result, or 9,500 in this example, if using the other math symbols the result would output an appropriate answer for its function SUM function: Allows you to refer to multiple cells and adds all the values You can add Individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell SUM(B6,87B8y was entered the formula would output the result of adding those three separate cells, or 215 in this example Similarly, if in a blank cel SUMB6 B8)" was entered the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 215 in this example 215 -4500*420 20 1. Assume the company uses variable costing: 21 22 Compute the unit product cost for one fireplace 23 24 Prepare a contribution margin income statement for the year 25 26 Sales 27 Variable expenses: 28 Variable cost of goods sold 29 Variable selling and administrative expenses 30 Contribution margin 31 Fixed expenses: 32 Fixed manufacturing overhead 33 Fixed selling and administrative expenses 34 Net operating income 967 202500 -C12+011 210000 35 37 36 Compute the number of fireplaces required to breakeven 38 2. Assume the company uses absorption costing: 40 Compute the unit product cost for one fireplace 39 210000 32 Fixed manufacturing overhead 33 Fixed selling and administrative expenses 34 Net operating income 35 36 Compute the number of fireplaces required to breakeven 37 38 2. Assume the company uses absorption costing: 39 40 Compute the unit product cost for one fireplace 41 42 Prepare an income statement for the year 43 44 Sales 45 Cost of goods sold 46 Gross margin 47 Selling and administrative expenses 48 Net operating income