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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 was 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: + (plus 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.

High Law Mcthod Cantrbution Format Income Statement Excel ? FILE HOME INSERT PAGE LAYOUTFORMULAS DATA REVFW VIEW ign Ln .-L _ Alignment Number Conditional Format as el Cells Edting Formattingble Styles To ald in planning, Jay Corporation is preparing a contrbution format Income statement 3 Budpeted informathon for Quarter 1 of Year 3 17,000 18.00 4 Sales in units 5 5ales price per unit After nalyzing experses, the comparny has deter mined the fellowing cost patterns. B Cost of goods sold 25.00 per unit 9.50% per dollar of sales 11 Aministrative salaries 12 Rent expense 1 Depreciation expense 45,000.00 per quarter 27,000.00 per quarter 36,000.00 per quarter 1s Management has condluded that shipping expense is a mixnd cast. Units shipprd and the related shipping cost over the last eight quarters are: 17 Yearl 18 Quarter 1 19 Quarter2 20 Quarter 3 21Duarter 4 22 Year 2Quarter 1 24 Quarter2 25 Quarter 3 20 Duarter 4 ost 67,000.00 94,000.00 89,800.00 92,600.00 12,500 21,000 13300 20000 72,500.00 80,000.00 84,000.00 13,700 14,000 14,300 22 28 Use the data to answer the following. 0 | 1. Using the high-low method, determine a cost formula for shipping expenses. Total Shipping Cost Units 83 High lvel of activity 34 Low level of a 35 Change in activity 37 Variable cost 38 s Compute the fixed cast portion using the high level of activity 0Total cost at high level of activity 41 Less: Variable cost element 42 Total fixed cost 49 42. Prepare a contribution format income statement for Quarter 1 of Year 3 45 Budgeted Contribution Format Iricome Statement For Year3, Quarter1 s0 Sales 1Vaable expenses: 2 Cost of goods sold 5 Sales commissions 4 Shipping expense 5s Totalvariable expenses 56 Contribution margin 57 Flxed expenses 58 Administrative salaries Rent expense 60 hipping expense 62 Dopreciation exponse 62 Totalfxed expenses 63 Net operating income

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