or an answer to be graded as correct, you must use an Excel formula:

1. Begin each formula with an = sign.
2. Reference cells, instead of entering values.

Example: =B3+C3

Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.

Departmental Income StatementsFor Year Ended December 31AcousticElectricSales$ 112,500$ 105,500Cost of goods sold55,67566,750Gross profit56,82538,750Expenses Advertising8,0756,250DepreciationEquipment10,1509,000Salaries17,30013,500Supplies used2,0301,700Rent6,1055,950Utilities3,0452,550Total expenses46,70538,950Income (loss)$ 10,120$ (200)