Question

Help Seve & Ext Submit Required information Chapter 1: Applying Excel The Chapter 1 Form worksheet is to be used to create your own worksheet version of Exhibit 1-7 in the text Chapter 1: Applying Excel: Excel Worksheet (Part 1 of 2) Download the Applying Excel form and enter formulas in all cells that contain question marks For example, in cell C18 enter the formula "-36". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1-7. Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1-7. If your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format income statement should now be $700 and the contribution margin should now be $4,700. If you do not get these answers, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click Save. You will use this worksheet to answer the questions in Part 2 upload a response file (15MB ma

Answer 1

1.Traditional Format Income Statement
Sales		$12,000
Cost of goods sold		$                        6,000
Gross Margin		$                        6,000
Selling and administrative expenses:
Selling($600+$2,500)	$                        3,100
Administrative($400+$1,500)	$                        1,900	$                        5,000
Net Operating Income		$                        1,000
2.Contribution Format Income Statement
Sales		$12,000
Variable expenses:
Cost of goods sold	$6,000
Variable Selling	$600
Variable Administrative	$400	$7,000
Contribution Margin		$5,000
Fixed expenses:
Fixed Selling	$2,500
Fixed Administrative	$1,500	$4,000
Net Operating Income		$1,000