Chapter 1 Exercise i 2 Required Information Saved Part 2 of 2 The Chapter 1 Form worksheet is to be used to create your own worksheet version of Exhibit 1-7 in the text. 10 points 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: A B 02:26:37 1 Chapter 1: Applying Excel 2 3 Data 4 eBook Sales $ 90,000 5 Variable costs: 6 Cost of goods sold $ 69,000 Print 7 Variable selling $ 6,900 8 Variable administrative $ 6,700 9 Fixed costs: References 10 Fixed selling $ 2,500 11 Fixed administrative $ 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 (c) What is the contribution margin now? Contribution margin 2. Suppose that sales are 29% higher as shown below: A B 1 Chapter 1: Applying Excel 2 3 Data 4 Sales $ 116,100 5 Variable costs: 6 Cost of goods sold $ 89,010 7 Variable selling $ 8,901 8 Variable administrative $ 8,643 9 Fixed costs: 10 Fixed selling $ 2,500 11 Fixed administrative $ 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 (d) When sales increase by 29%, which of the following should also increase by 29% 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 29%, which of the following should increase by more than 29% 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.)