What would operating income be with both of the following changes: 10% increase in activity volume (i.e., sales); and $5,000 increase in fixed expenses (for advertising)Please show your work in an Excel format. Thanks so much! Total Sales: $550,000 Less: Variable Expenses Variable CGS Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Materials Used 144,000 Production Labor 202,000 Electricity--production 35,000 Variable admin expenses Electricity--office 10,000 Contribution Margin 159,000 Less: Fixed Expenses Factory Supervision 40,000 Fixed admin expenses Rent 25,000 Office Labor 25,000 Total 50,000 Operating Income 69,000
What would operating income be with both of the following changes: 10% increase in activity volume (i.e., sales); and $5,000 increase in fixed expenses (for advertising)Please show your work in an Excel format. Thanks so much! Total Sales: $550,000 Less: Variable Expenses Variable CGS Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Materials Used 144,000 Production Labor 202,000 Electricity--production 35,000 Variable admin expenses Electricity--office 10,000 Contribution Margin 159,000 Less: Fixed Expenses Factory Supervision 40,000 Fixed admin expenses Rent 25,000 Office Labor 25,000 Total 50,000 Operating Income 69,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What would operating income be with both of the following changes:
10% increase in activity volume (i.e., sales); and
$5,000 increase in fixed expenses (for advertising)
Please show your work in an Excel format. Thanks so much!
|
Total Sales: |
$550,000 | ||
| Less: Variable Expenses | |||
| Variable CGS | |||
| Starting Materials | 10,000 | ||
| Materials Purchased | 165,000 | ||
| Ending Materials | 31,000 | ||
| Materials Used | 144,000 | ||
| Production Labor | 202,000 | ||
| Electricity--production | 35,000 | ||
| Variable admin expenses | |||
| Electricity--office | 10,000 | ||
| Contribution Margin | 159,000 | ||
| Less: Fixed Expenses | |||
| Factory Supervision | 40,000 | ||
| Fixed admin expenses | |||
| Rent | 25,000 | ||
| Office Labor | 25,000 | ||
| Total | 50,000 | ||
| Operating Income | 69,000 |
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