Question: I need the excel formulas please! Decision 1: The various flavors of muesli are considered product lines at Muesli AG. A contribution margin statement segmented

 I need the excel formulas please! Decision 1: The various flavorsof muesli are considered product lines at Muesli AG. A contribution margin

I need the excel formulas please!

Decision 1: The various flavors of muesli are considered product lines at Muesli AG. A contribution margin statement segmented by product line is provided. Management has noticed that nut muesli has consistently shown a negative net income. In the strategic planning meeting, they will be discussing whether to discontinue selling nut muesli. Here is some more information on the various expenses in the statement. . Advertising is specific to the various product lines Sales teams are assigned to specific product lines. If the product line is dropped, the sales reps' salaries will be discontinued. Labor unions are strong in Germany. Direct labor costs will remain at the stated amount regardless of how many or which products are made. Variable selling expense is commission paid on the sales of the products. All other fixed costs are divided evenly across product lines. The team believes that they will likely not be able to use any time on the machine that is freed up from production of nut muesli for other product lines because of market constraints so the machine will remain idle. . . . Use cell formulas and cell links in the Excel worksheet provided to answer the following questions. 1. How will dropping the sales of nut muesli affect net income at Muesli AG? 2. Should the company discontinue manufacturing and selling nut muesli? Explain. 3. What other considerations should go into making this decision? Decision 2: Muesli AG currently purchases all its packaging for the muesli that it sells. They pay 0.12 for the large bags, 0.28 for large boxes, 0.09 for small bags and 0.21 for small boxes. Management is considering using a corner of the warehouse that is unused to manufacture the large boxes. They currently purchase and use 48,000 large boxes per month, 576,000 large boxes per year. The table below describes the estimated costs to manufacture the large boxes. Muesli AG will need to purchase equipment to cut, fold and glue the boxes. It will be depreciated for five years at 10,400 per year. 12,000 52,000 12.00 Direct labor per month Purchase of equipment Bundle of cardboard Each bundle makes 990 boxes. Labels (each) Fixed manufacturing overhead Per box of muesli 0.01 1.61 4. Compare the costs of manufacturing the large boxes to the cost of purchasing the large boxes. 5. Should Muesli AG manufacture the large boxes or purchase them from their current supplier? 6. Explain how the purchase of the box manufacturing equipment informs your decision. Blueberry 1,795,200 Product Lines Strawberry Raisin 1,705,440 1,346,400 Original 2,154,240 Mixed 1,256,640 Total 8,976,000 942,480 1,256,640 42,240 496,320 1,193,808 40,128 471,504 31,680 1,507,968 50,688 595,584 879,648 29,568 347,424 6,283,200 211,200 2,481,600 372,240 192,000 6,000 40,392 10,000 40,000 24,000 80,000 14,000 89,928 182,400 6,000 38,372 10,000 40,000 24,000 80,000 14,000 76,732 144,000 6,000 30,294 10,000 40,000 24,000 70,000 14,000 33,946 230,400 6,000 48,470 10,000 40,000 24,000 100,000 14,000 122,714 134,400 6,000 28,274 10,000 40,000 24,000 80,000 14,000 10,750 960,000 36,000 201,960 60,000 240,000 144,000 480,000 84,000 275,640 3 4 Nut 5 Sales Revenues 718,080 6 Variable Expenses: 7 Variable Manufacturing Expense 502,656 8 Variable Sales Expense 16,896 9 Contribution Margin 198,528 10 Fixed Expenses: 11 Direct Labor 76,800 12 Administrative Expenses 6,000 13 Advertising 16,157 14 Depreciation - Building 10,000 15 Depreciation - Mfg Equipment 40,000 16 Research & Development 24,000 17 Sales Salaries 70,000 18 Transportation Costs 14,000 19 Net Income - 58,429 20 21 Decision 1 22 23 24 Nut 25 Sales Revenues 26 Variable Expenses: 27 Variable Manufacturing Expense 28 Variable Sales Expense 29 Contribution Margin 30 Fixed Expenses: 31 Direct Labor 32 Administrative Expenses 33 Advertising 34 Depreciation - Building 35 Depreciation - Mfg Equipment 36 Research & Development 37 Sales Salaries 38 Transportation Costs 39 Net Income 40 41 Difference in Net Income if Nut Muesli is Dropped (1) Product Lines Raisin Blueberry Strawberry Original Mixed Total ( 275,640)

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