Question

Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. Use the information included in the Excel Simulation and the Excel functions described below to complete the task • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=B4" wa entered, the formula would output the result from cell B4, or 17,000 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plu sign to add). - (minus sign to subtract). (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell"=B19+B20" was entered the formula would add the values from those cells and output the result, or 183.800 in this example. If using the other math symbols the result would output an appropriate answer for its function. . SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, if in a blank cell"=SUM(C18.C19,c20)" was entered the formula would output the result of adding those three separate cells, or 47,300 in this example. Similarly, if in a blank cell =SUM(C18:C20)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 47.300 in this example.

Answer 1

1		Total Shipping Cost	Units
	High level of activity	$100,000.00	22,500
	Low level of activity	$67,000.00	12,500
	Change in activity	$33,000.00	10,000
	Variable cost	$3.30	per unit
	Total cost at high level of activity	$94,000.00
	Less: Variable cost element	$69,300.00
	Total fixed cost	$24,700.00
2	Jay Corporation
	Budgeted Contribution Format Income Statement
	For Year 3, Quarter 1
	Sales		$816,000.00
	Variable expenses:
	Cost of goods sold	$493,000.00
	Sales commissions	$77,520.00
	Shipping expense	$56,100.00
	Total varibale expenses		$626,620.00
	Contribution margin
	Fixed expenses:
	Administrative salaries	$45,000.00
	Rent expense	$27,000.00
	Shipping expense	$24,700.00
	Depreciation expense	$36,000.00
	Total fixed expenses		$132,700.00
	Net operating income		$56,680.00