Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. 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, "=B4" was entered, the formula would output the result from cell B4. or 17,000 in this example. • Besic Meth funetlons: 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 slash to divide). From the Excel Simulation below, if in a blank cell =B19-820" was entered, the formula would add the values from those cells and output the result, or 183.800 in this example. If using the other math symbols the result would output an appropriate answer for its function. • SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. 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, "=B4" was entered, the formula would output the result from cell B4. or 17,000 in this example. • Besic Meth funetlons: 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 slash to divide). From the Excel Simulation below, if in a blank cell =B19-820" was entered, the formula would add the values from those cells and output the result, or 183.800 in this example. If using the other math symbols the result would output an appropriate answer for its function. • SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format
income statement. 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, "=B4" was
entered, the formula would output the result from cell B4, or 17,000 in this example.
• Basle Meth funetlons: 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 slash to divide). From the Excel Simulation below, if in
a blank cell =B19+820" was entered, the formula would add the values from those cells and output the result, or 183,800 in this example. If
using the other math symbols the result would output an appropriate answer for its function.
• SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding
those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
High-Low Method; Contribution Format Income Statement - Excel
Sign In
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Calibri
11
Alignment Number Conditional Format as
Formatting Table Styles
Paste
BIU-
Cell
Cells
Editing
Clipboard
Font
Styles
A1
To aid in planning, Jay Corporation is preparing a contribution format income
D
F
G
H
Total Shipping Cost
32
Units
33 High level of activity
34 Low level of activity
35 Change in activity
36
37 Variable cost
per unit
38
19 Compute the fixed cost portion using the high level of activity.
40
Total cost at high level of activity
41
42 Total fixed cost
Less: Variable cost element
43
44 2. Prepare a contribution format income statement for Quarter 1 of Year 3.
45
46
Jay Corporation
Budgeted Contribution Format Income Statement
47
48
For Year 3, Quarter 1
49
50 Sales
51 Variable expenses:
52 Cost of goods sald
53 Sales commissions
54 Shipping expense
55 Total variable expenses
56 Contribution margin
57 Fixed expenses:
58
Administrative salaries
59
Rent expense
60 Shipping expense
Depreciation expense
62 Total fixed expenses
61
63 Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d5fb030-0b22-4856-bbc7-ebad53742943%2F0ba0ec53-25e4-47d3-9545-334a04a2ed51%2Fpnw59za_processed.png&w=3840&q=75)
Transcribed Image Text:Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format
income statement. 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, "=B4" was
entered, the formula would output the result from cell B4, or 17,000 in this example.
• Basle Meth funetlons: 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 slash to divide). From the Excel Simulation below, if in
a blank cell =B19+820" was entered, the formula would add the values from those cells and output the result, or 183,800 in this example. If
using the other math symbols the result would output an appropriate answer for its function.
• SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding
those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
High-Low Method; Contribution Format Income Statement - Excel
Sign In
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Calibri
11
Alignment Number Conditional Format as
Formatting Table Styles
Paste
BIU-
Cell
Cells
Editing
Clipboard
Font
Styles
A1
To aid in planning, Jay Corporation is preparing a contribution format income
D
F
G
H
Total Shipping Cost
32
Units
33 High level of activity
34 Low level of activity
35 Change in activity
36
37 Variable cost
per unit
38
19 Compute the fixed cost portion using the high level of activity.
40
Total cost at high level of activity
41
42 Total fixed cost
Less: Variable cost element
43
44 2. Prepare a contribution format income statement for Quarter 1 of Year 3.
45
46
Jay Corporation
Budgeted Contribution Format Income Statement
47
48
For Year 3, Quarter 1
49
50 Sales
51 Variable expenses:
52 Cost of goods sald
53 Sales commissions
54 Shipping expense
55 Total variable expenses
56 Contribution margin
57 Fixed expenses:
58
Administrative salaries
59
Rent expense
60 Shipping expense
Depreciation expense
62 Total fixed expenses
61
63 Net operating income
![Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format
income statement. 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, "=84" was
entered, the formula would output the result from cell B4. or 17.000 in this example.
• Basle Math funetlons: 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 slash to divide). From the Excel Simulation below, if in
a blank cell "=B19+B20" was entered, the formula would add the values from those cells and output the result, or 183,.800 in this example. If
using the other math symbols the result would output an appropriate answer for its function.
• SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding
those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
国日。
High-Low Method; Contribution Format Income Statement - Excel
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign In
Calibri
-11
-A A
Paste
BIU-
Alignment Number
Conditional Format as
Cell
Cells
Editing
Formatting Table Styles
Clipboard
Font
Styles
A1
fe
To aid in planning, Jay Corporation is preparing a contribution format income
D
G
H
To aid in planning, Jay Corporatian is preparinga contribution format income statement.
2
3 Budgeted information for Quarter 1 of Year 3:
4
Sales in units
17,000
5 Sales price per unit
48.00
7 After analyzing expenses, the company has determined the following cost patterns.
Cast of gaads sald
29.00 per unit
Sales commissions
9.50% per dollar of sales
10
11
Administrative salaries
45,000.00 per quarter
12
Rent expense
27,000.00 per quarter
13 Depreciation expense
36,000.00 per quarter
14
15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost aver
the last eight quarters are:
16
Tatal Shipping Cost
67,000.00
94,000.00
17 fear 1
Units
12,500
21,000
18
Quarter 1
Quarter2
19
Quarter 3
Quarter 4
20
89,800.00
13.800
21
92,600.00
20,000
22 fear 2
Quarter 1
72,500.00
13,700
23
24
Quarter2
80,000.00
14,000
25
Quarter 3
84,000.00
14,300
26
Quarter 4
100,000.00
22,500
27
28 Jse the data to answer the following.
29
30 L. Using the high-low methad, determine a cost formula for shipping expenses.
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d5fb030-0b22-4856-bbc7-ebad53742943%2F0ba0ec53-25e4-47d3-9545-334a04a2ed51%2Ftgaaa3k_processed.png&w=3840&q=75)
Transcribed Image Text:Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format
income statement. 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, "=84" was
entered, the formula would output the result from cell B4. or 17.000 in this example.
• Basle Math funetlons: 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 slash to divide). From the Excel Simulation below, if in
a blank cell "=B19+B20" was entered, the formula would add the values from those cells and output the result, or 183,.800 in this example. If
using the other math symbols the result would output an appropriate answer for its function.
• SUM functlon: 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(C18.C19.C20)" was entered, the formula would output the result of adding
those three separate cells, or 47,300 in this example. Similarly, if in a blank cell "=SUM(C18:C20)" 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 47,300 in this example.
国日。
High-Low Method; Contribution Format Income Statement - Excel
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Sign In
Calibri
-11
-A A
Paste
BIU-
Alignment Number
Conditional Format as
Cell
Cells
Editing
Formatting Table Styles
Clipboard
Font
Styles
A1
fe
To aid in planning, Jay Corporation is preparing a contribution format income
D
G
H
To aid in planning, Jay Corporatian is preparinga contribution format income statement.
2
3 Budgeted information for Quarter 1 of Year 3:
4
Sales in units
17,000
5 Sales price per unit
48.00
7 After analyzing expenses, the company has determined the following cost patterns.
Cast of gaads sald
29.00 per unit
Sales commissions
9.50% per dollar of sales
10
11
Administrative salaries
45,000.00 per quarter
12
Rent expense
27,000.00 per quarter
13 Depreciation expense
36,000.00 per quarter
14
15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost aver
the last eight quarters are:
16
Tatal Shipping Cost
67,000.00
94,000.00
17 fear 1
Units
12,500
21,000
18
Quarter 1
Quarter2
19
Quarter 3
Quarter 4
20
89,800.00
13.800
21
92,600.00
20,000
22 fear 2
Quarter 1
72,500.00
13,700
23
24
Quarter2
80,000.00
14,000
25
Quarter 3
84,000.00
14,300
26
Quarter 4
100,000.00
22,500
27
28 Jse the data to answer the following.
29
30 L. Using the high-low methad, determine a cost formula for shipping expenses.
31
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education