Chapter 1: Applying Excel: Exercise (Part 2 of 2) 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: 1 Chapter 1: Applying 2 Excel $ 52.500 $26.500 $ 900 4 Data S Sales 16 Variable costs: 7 Cost of goods sold 8 Variable selling 9 Variable 10 administrative 11 Fixed costs: Fixed selling Fixed administrative $ 700 $ $ 2.500 1,500 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net operating income Met operating (c) What is the contribution margin now? Contribution margin 2. Suppose that sales are 11% higher as shown below. $ 58.275 1 Chapter 1: Applying 2 Excel 3 4 Data S Sales 6 Variable costs: 7 Cost of goods sold | 8 Variable selling 19 Variable 10 administrative 11 Fixed costs: Fixed selling Fixed administrative $ 29,415 $ 999 $ 777 $ $ 2,500 1.500 Enter this new data into your worksheet. Make sure you enter all of the new data- not just the sales. (a) What is the gross margin now? Gross margin (b) What is the net operating income now? Net operating income (c) What is the contribution margin now? Contribution margin id) When sales increase by 11%, which of the following should also increase by 11% in a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating Income (e) When sales increase by 11%, which of the following should increase by more than 11% in a merchandising company? [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Variable cost Fixed cost Gross margin Contribution margin Net operating income