JJ. 156. Required:1. Using the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of the effect onoperating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20 percent increase.Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs aremanufacturing related; the remaining one-third are selling-related. The variable manufacturing cost per unit is $30, while the variableselling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,400 units.)2. Using the spreadsheet you created, compute the new operating profit assuming a 10% decrease in demand.Complete this question by entering your answers in the tabs below.Gaming TableCost DataFixed costs (per year)Selling priceVariable costPlanned productionPlanned sales volumeGaming TableCost DataGaming TableCost DataContributionIncomeStatementsSalesVariable costsTotal contribution marginFixed costsOperating profitUnits Sold1,5001,5001,5001,500ContributionIncomeStatementsContributionIncomeStatementsVariable Costper Unit$What IfSensitivityAnalysisPer Unit30354045$75 $7575752023Required 2OperatingProfitPercent100.00 % $46.6753.33 % $7,5000-7,500-15,000$ChangeNotes15.0007,0008,000 53.33% is the contribution margin ratio08,000 $8,000 = 0.5333 × $15,000What If Sensitivity Analysis >Required 1 > Gaming TableCost DataDOLContributionIncomeStatementsGaming TableCost DataUsing the data from 2022 in Gaming Table Cost Data, create an Excel spreadsheet to provide a sensitivity analysis of theeffect on operating profit of potential changes in demand for HFI Incorporated, ranging from a 20 percent decrease to a 20percent increase. Use Contribution Income Statements and What-If Sensitivity Analysis as a guide. Assume that two-thirds of fixed costs are manufacturing related; the remaining one-third are selling-related. The variable manufacturing costper unit is $30, while the variable selling cost per unit is $5. (Hint: Calculate the DOL for 2022 at a sales volume of 2,400units.) (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567 = 15.67%).)%What IfSensitivityAnalysisContributionIncomeStatementsRequired 1Required 2 >Show less A

1)Units SoldBasisVariable cost per unitFixed CostsSelling price per unitOperating profit$1,92020%…

Answered: Required: 1. Using the data from 2022…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

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Please answer 11.2 and 11.3
Assuming that "Cost of Revenue" is the only variable cost and using the previously calculated information, what is Facebook's Margin of Safety in 2019 (round 2 decimal places)? Assuming that "Cost of Revenue" is the only variable cost, what is Facebook's Magnitude of Operating Leverage for 2019 (round 2 decimal places)?
A CVP graph such as the one shown below is a useful technique for showing relationships among an organization's costs, volume, and profits. 8. Required: Identify the numbered components in the CVP graph. Answer Number 1 Number 2 Number 3 Number 4 Number 5 Number 6 Number 7 Number 8 Number 9 State the effect of each of the following actions on the break-even point. Answer |The unit selling price is increased from $ 18 to $20. |Unit variable expenses are decreased from $12 to $10. |Fixed expenses are increased by $3,000 per period Two thousand more units are sold during the period than were budgeted Due to paying salespersons a commission rather than a flat salary, fixed expenses are reduced by $8,000 per period and unit variable expenses are increased by $3 Due to an increase in the cost of materials, both unit variable expenses and the selling price are increased by $2. Advertising costs are increased by $10,000 per period, resulting in a 10% increase in the number of units sold. Due…
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Howard Cooper, the president of Vernon Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required A Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 42,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Vernon charges customers $83 per hour, the firm can achieve 52,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if…
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