On the Data Tables - Student tab in your Excel spreadsheet, update the given information section of the Income Statement for Hello Company with the data below: Units Price per unit Variable expense per unit Total Fixed Costs Income Statement SCENARIO 1 Product A Product B Product C Required: 2. Using the Data Table What-if Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product based on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 45,000 units.) Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two variable data table. Product A can vary between 32,000 units and a maximum of 37,000 units. Product B can vary between 5,000 units and a maximum of 10,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product C is the same each month at 3,000 units. SCENARIO 2 Product A Product B Product C Units Product A 35,000 $9.00 $ 3.00 $20,000 Units Operating Income (Loss) 0 $ Product B Product C 7,000 3,000 $6.00 $ 60.00 $ 1.00 $ 20.00 $40,000 $10,000 Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table and then determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. Max Capacity 45,000 Operating Income (Loss)
On the Data Tables - Student tab in your Excel spreadsheet, update the given information section of the Income Statement for Hello Company with the data below: Units Price per unit Variable expense per unit Total Fixed Costs Income Statement SCENARIO 1 Product A Product B Product C Required: 2. Using the Data Table What-if Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product based on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 45,000 units.) Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two variable data table. Product A can vary between 32,000 units and a maximum of 37,000 units. Product B can vary between 5,000 units and a maximum of 10,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product C is the same each month at 3,000 units. SCENARIO 2 Product A Product B Product C Units Product A 35,000 $9.00 $ 3.00 $20,000 Units Operating Income (Loss) 0 $ Product B Product C 7,000 3,000 $6.00 $ 60.00 $ 1.00 $ 20.00 $40,000 $10,000 Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table and then determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. Max Capacity 45,000 Operating Income (Loss)
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 6PA: Using the information from BDS Enterprises, prepare the income statement to include all costs, but...
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Transcribed Image Text:On the Data Tables - Student tab in your Excel spreadsheet, update the given information section of the Income
Statement for Hello Company with the data below:
Units
Price per unit
Variable expense per unit
Total Fixed Costs
Income Statement
SCENARIO 1
Product A
Product B
Product C
Required:
2. Using the Data Table What-if Analysis tool in Excel, determine the Units and Operating Income (Loss) for each
product based on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 45,000 units.)
Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this
analysis using a two variable data table. Product A can vary between 32,000 units and a maximum of 37.000 units.
Product B can vary between 5,000 units and a maximum of 10,000 units. Both Products A and B are manufactured
in 1,000-unit increments. The production level of Product C is the same each month at 3,000 units.
SCENARIO 2
Product A
Product B
Product C
Units
Product A
35,000
$9.00
$ 3.00
$20,000
Units
Operating
Income (Loss)
0 $
Product B
7,000
$ 6.00
$ 1.00
$40,000
Product C
3,000
$ 60.00
$ 20.00
$10,000
Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table and then
determine the number of units for each product that should be produced (to the nearest thousand) to make each
product line profitable.
Max
Capacity
45,000
Operating
Income (Loss)
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