Variable and Absorption Costing using Excel's SUM and Basic Math Functions Addison, inc. makes a single product, an indoor fireplace, and has provied data from last year of operations. The Controlier has asked you to compare income statements if the company used the vanable costing approach vs, the absorption costing report Use the information inciuded in the Excei Simulation and the Excel functions described below to compiete the task. - Cell Reference: Allows you to refer to data from another cell in the worisheet. From the Excel Simulation beiow, if in a blank cell, "-BS" was entered, the formula would output the resuit fion cell B3, or 420 in this example. - Basic. Math functions: Allows you to use the oasic math symbots to perform mathematical functions rou can use the followng keyn + iplus sign to add), -(minus sign to subtract). "(asterisk sign to muatiply), and / (forward siash to divde). From the Excel Simuation below, if in a blank cell " 815+816 was entered, the formula would add the values from those cees and output the result or 9,500 in this example. if using the other math symbois the resuit would output an appropriate answer for its function. - sum function: Allows you to refer to mulbple cells and adds all the values. You can add individual celf references or ranges to utilze thes function. From the Excel Simulation Delow, if in a blank cell "a SUM(B6.87.88)" was entered, the formula would output the result of acding those three separate cells, or 215 in this example. Similary, if in a blank cell "= SuM(B6 88j) 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. 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 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 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