Week 7 Assignment - Excel Problem 14-47 - Closing an Unprofitable Department Week 7 Assignment - Excel Build A Spreadsheet Using the Excel spreadsheet template provided, build a spreadsheet by preparing the following statements for: Tipton One-Stop Decorating Closing an Unprofitable Department Chapter 14 (Textbook): (LO 14-4,14-5) Problem 14-47 (#1 only) Required: 1. Should Tipton close its wallpaper operation? Show computations to support your answer DATA INPUT Paints & Supplies Carpeting Wallpaper Sales Variable Costs Fixed Costs Total Costs Operating Income (loss) 460,000 228,000 322,000$ 112,000 96,000 $ 63,000$ (17,000) Remodeling 12,400 120,000 5% 40% 20% 25,000 1 Remodeling Costs Increased Sales Increased Contribution Margin Wallpaper fixed costs cut Loss of Paint Sales New Adveritising Problem 14-47- Closing an Unprofitable Department Paints & Supplies CarpetingWallpaper Sales Less: Variable Costs Contribution Margin If wallpaper is closed, ther Loss of wall paper contribution margin Remodeling Added profitability from carpet sales 1 Fixed Cost Savings Decreased Contribution Margin from paint & supplies 4 Increased Advertisin Total Income (loss) from closure The current contribution margin ratio for carpeting is This ratio will increase to 35%, producing a new contribution for the line of The end result is that the carpeting's contribution margin will rise by boosting the firm profitability by the same amount 7