Chapter 2: Applying Excel Data Sales $12,000 Variable costs: Cost of goods sold Variable selling $6,000 $600 $400 Variable administrative Fixed costs: Fixed selling $2,500 $1,500 Fixed administrative Enter a formula into each of the cells marked with a ? below Exhibit 2-9 Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling Administrative Net operating income Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Variable selling Variable administration Contribution margin Fixed expenses: Fixed selling Fixed administrative Net operating income 1. Now change all of the dollar amounts in the data area of your worksheet so that it looks like this: 1 Chapter 2: Applying Excel 3 Data $10,500 4 Sales 5 Variable costs: $5,000 Cost of goods sold Variable selling $500 $300 Variable administrative 9 Fixed costs: Fixed selling $2,500 10 $1,500 11 Fixed administrative 12 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 B. 2. Suppose that sales are 1% higher than the data provided in requirement 1. A 1 Chapter 2: Applying Excel 3 Data $10,605 4 Sales 5 Variable costs: $5,050 Cost of goods sold Variable selling $505 $303 Variable administrative 9 Fixed costs: Fixed selling $2,500 10 $1,500 11 Fixed administrative 12 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