Chapter IE, Problem 12IE

INTEGRATION EXERCISE 12 Cost-Volume-Profit Relationships, Variable Costing LO1-4, LO5-1, LO5-5,LO5-7, LO5-8, L06-1, LO6-2, LO6-3

Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise 9. In addition to the budget schedules that you prepared in Integration Exercise 9, insert two new tabs in your Microsoft Excel worksheet titled “CVP Analysis”and “Variable Costing.”
Required(For all questions, be sure to use formulas that link to the other tabs in your Microsoft Excel worksheet when performing your calculations):

1. Calculate the following budgeted figures for 2017:
1. The total fixed cost.
2. The variable cost per unit sold.
3. The contribution margin per unit sold
4. The break-even point in unit sales and dollar sales.
5. The margin of safety.
6. The degree of operating leverage
2. Calculate the following budgeted figures for 2017:
1. A variable costing income statement. Stop your computations at net operating income.
2. A reconciliation that explains the difference in the absorption costing and variable costing net operating incomes.