Chapter 1: Applying Excel: Exercise (Part 2 of 2) 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $18,500 Variable costs: Cost of goods sold $12,000 Variable selling $1,200 Variable administrative $1,000 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now? 2. Suppose that sales are 12% higher as shown below: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $20,720 Variable costs: Cost of goods sold $13,440 Variable selling $1,344 Variable administrative $1,120 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 Enter this new data into your worksheet. Make sure you enter all of the new data - not just the sales. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now? (d) When sales increase by 12%, which of the following should also increase by 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating income (e) When sales increase by 12%, which of the following should increase by more than 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating income

Chapter 1: Applying Excel: Exercise (Part 2 of 2) 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $18,500 Variable costs: Cost of goods sold $12,000 Variable selling $1,200 Variable administrative $1,000 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now? 2. Suppose that sales are 12% higher as shown below: A B 1 2 3 4 5 6 7 8 9 10 11 Chapter 1: Applying Excel Data Sales $20,720 Variable costs: Cost of goods sold $13,440 Variable selling $1,344 Variable administrative $1,120 Fixed costs: Fixed selling $2,500 Fixed administrative $1,500 Enter this new data into your worksheet. Make sure you enter all of the new data - not just the sales. (a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now? (d) When sales increase by 12%, which of the following should also increase by 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating income (e) When sales increase by 12%, which of the following should increase by more than 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Chapter 1: Applying Excel: Exercise (Part 2 of 2)

1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this:

Chapter 1: Applying Excel

Data
Sales	$18,500
Variable costs:
Cost of goods sold	$12,000
Variable selling	$1,200
Variable administrative	$1,000
Fixed costs:
Fixed selling	$2,500
Fixed administrative	$1,500

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the gross margin now?

(b) What is the net operating income now?

2. Suppose that sales are 12% higher as shown below:

Chapter 1: Applying Excel

Data
Sales	$20,720
Variable costs:
Cost of goods sold	$13,440
Variable selling	$1,344
Variable administrative	$1,120
Fixed costs:
Fixed selling	$2,500
Fixed administrative	$1,500

Enter this new data into your worksheet. Make sure you enter all of the new data - not just the sales.

(a) What is the gross margin now?

(b) What is the net operating income now?

(d) When sales increase by 12%, which of the following should also increase by 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Variable cost
Fixed cost
Gross margin
Contribution margin
Net operating income

(e) When sales increase by 12%, which of the following should increase by more than 12% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Variable cost
Fixed cost
Gross margin
Contribution margin
Net operating income

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