(Solution) MOS 3370 Managerial Accounting IF STATEMENTS 1 Assignment
Lyndia Company is a merchandiser that sells a total of 15 products to its customers. The company provided the following information from last year:
| Product | Unit Sales | Selling Price per Unit | Variable Cost per Unit | ||||||
| 1 | 9,000 | $ | 29 | $ | 12.95 | ||||
| 2 | 16,500 | $ | 99 | $ | 68.55 | ||||
| 3 | 6,000 | $ | 85 | $ | 42.50 | ||||
| 4 | 19,500 | $ | 109 | $ | 85.00 | ||||
| 5 | 4,500 | $ | 19 | $ | 6.35 | ||||
| 6 | 27,000 | $ | 119 | $ | 92.00 | ||||
| 7 | 3,000 | $ | 39 | $ | 14.30 | ||||
| 8 | 7,500 | $ | 79 | $ | 33.18 | ||||
| 9 | 9,000 | $ | 69 | $ | 30.36 | ||||
| 10 | 15,000 | $ | 95 | $ | 77.60 | ||||
| 11 | 10,500 | $ | 59 | $ | 25.40 | ||||
| 12 | 1,500 | $ | 65 | $ | 29.00 | ||||
| 13 | 3,000 | $ | 44 | $ | 12.40 | ||||
| 14 | 6,000 | $ | 49 | $ | 13.48 | ||||
| 15 | 12,000 | $ | 89 | $ | 61.83 | ||||
| 150,000 | |||||||||
Last year, Lyndia’s total fixed expenses and net operating income were $3,000,000 and $1,223,070, respectively. The company would like your assistance in developing some financial projections for this year.
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Required:
1. To confirm your understanding of the spreadsheet’s design, answer the following questions with respect to last year:
a. How is the percentage in cell B3 calculated? Why do you think specifying the sales mix percentages for all products is important?
b. How are the amounts in cells B7, B8, and B9 calculated?
c. How are the amounts in cells Q7, Q8, and Q9 calculated?
d. How is the amount in cell Q11 calculated?
e. How are the percentages in cells R8 and R9 calculated?
f. How is the amount in cell S9 calculated?
Related: (Solution) MOS3370 IF STATEMENTS 2 Assignment
Step By Step Answer – IF STATEMENTS 1
Explanation
1a.
The sales mix percentage in cell B3 (6%) is calculated by dividing Product 1’s unit sales of 9,000 units (cell B2) by the total unit sales of 150,000 units (cell Q2). The sales mix percentages are important because we hold them constant when performing break-even and target profit calculations.
1b.
The amount in cell B7 ($261,000) is the product of cell B2 (9,000 units) and cell B4 ($29.00 per unit). The amount in cell B8 ($116,550) is the product of cell B2 (9,000 units) and cell B5 ($12.95 per unit). The amount in cell B9 ($144,450) is the sales in cell B7 ($261,000) minus the variable expenses in cell B8 ($116,550).
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