Question

1 Chapter 2: Applying Excel 3 Data 4 Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative 12 13 Enter a formula into each of the cells marked with a ? below 14 Exhibit 2-9 15 16 Traditional Format Income Statement 17 Sales 18 Cost of goods sold 19 Gross margin 20 Selling and administrative expenses $12,000 $6,000 $600 $400 $2,500 $1,500 S 12,000 6,000 6,000 21| Selling 22 Administrative 23 Net operating income 04

Answer 1

1 .

Sales		$66,500
Variable expenses
COGS	$31,500
Variable selling	$3,200
Variable administrative	$3,000	$37,700
Fixed expenses
Fixed selling	$2,500
Fixed administrative	$1,500	$4,000
Net operating income		$24,800

Gross margin ( sales - COGS) = $66,500-$31,500 = $35,000

Net operating income = $24,800

Contribution margin = ($66,500-$37,700) = $28,800

2.

Sales		$81,795
Variable expenses
COGS	$38,745
Variable selling	$3,936
Variable administrative	$3,690	$46,371
Contribution margin		$35,424
Fixed expenses
Fixed selling	$2,500
Fixed administrative	$1,500	$4,000
Net operating income		$31,424

Gross margin = $81,795-$38,745 = $43,050

Net operating income = $31,424

Contribution margin = $35,424