? The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament

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The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a seventy-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on labor hours, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. The variable and mixed costs may be dependent on labor hours, unit sales, or distance shipped. Use Excel's RSQ function to determine what is the cost driver for variable component of those costs that are variable or mixed. Once the cost driver is determined for each of the mixed or variable costs you will need to determine the cost elements using the Excel SLOPE and INTERCEPT functions. B. C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; total labor hours worked: 97,000 hours; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month. Next, construct a Traditional Income Statement for the upcoming month. Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. Regarding the selling price; this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount. The Coco Lamela Company (CLC) owns the global rights to sell a very fragile glass ornament called "Jack Wilshere's Tears". The cost of goods sold for the ornaments are shown on the second page. CLC sets its selling prices so that each unit sold returns a seventy-five percent gross margin. Data regarding product costs, and administration and selling expenses for the past twelve months have been accumulated in order develop a budget estimate for an upcoming month. Coco Lamela's Marketing Department has reviewed this data and could not reach a conclusion as to what is the most appropriate independent variable for predicting variable and mixed costs. These costs may be dependent on labor hours, unit sales, or distance shipped - Marketing just doesn't know since they never had to take this accounting course. It is up to you to figure this out. REQUIRED: A. Get the information from the second page into your Excel workbook. Analyze the data to determine the behavior of each cost. The variable and mixed costs may be dependent on labor hours, unit sales, or distance shipped. Use Excel's RSQ function to determine what is the cost driver for variable component of those costs that are variable or mixed. Once the cost driver is determined for each of the mixed or variable costs you will need to determine the cost elements using the Excel SLOPE and INTERCEPT functions. B. C. The Coco Lamela Company wants to estimate profitability for the upcoming month. The following estimates are to be used: unit sales: 67,000; total labor hours worked: 97,000 hours; distance shipped: 347,000 miles. First, prepare a pro forma Contribution Format Income Statement for the upcoming month. Next, construct a Traditional Income Statement for the upcoming month. Make certain to present each cost/expense item separately on its own line - do not aggregate the costs. Regarding the selling price; this should first be calculated on a per unit basis, then use the ROUND function to limit this amount to a whole dollar amount.

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The following data is given The Selling Price is Determined to give 75 Gross Margin Months Distannce ... View the full answer