.00:6.41 1 Chapter 2: Applying Excel $12.000 3 Data Sales 5 Variable costs: 6 Cost of goods sold 7 Variable selling 8 Variable administrative 9 Fixed costs 10 Fixed selling 11 Fixed administrative $6,000 $600 $400 $2.500 $1,500 12 13 Enter a formula into each of the cells marked with a ? below 14 Exhibit 2.9 16 Traditional Format Income Statement 17 Sales 18 Cost of goods sold 19 Gross margin 20 Selling and administrative expe 21. Selling 22 Administrative 23 Niet operating income 25 Contribution Format Income Statement 26 Sales 9204/420.00:55.1 Required: Check your worksheet by changing the variable selling cost in the Data area to $900, keep ing all of the other data the same as in Exhibit 2-9. 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. How much is the gross margin? Did it change? Why or why not? Suppose that sales are 10% higher as shown below: $13,200 Sales .... Variable costs: Cost of goods sold Variable selling ... Variable administrative Fixed costs: Fixed selling Fixed administrative. $6,600 $990 $440 $2,500 $1,500 Enter this new data into your worksheet. Make sure that you change all of the data that are diflerent not just the sales. Print or copy the income statements from your worksheet. What happened to the variable costs and to the fixed costs when sales increased by 10%? Why Did the contribution margin increase by 10%? Why or why not? Did the net operating income increase by 109? Why or why not? 700