Accounting Excel Problems

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B i g , T i m c I n r . c s r o r G r o u p i s o p e n i n g i r n o f f i c c i n l ) a l l : r r . l - i x c d m o r r t h l v c o s t s a r e

o f f i c e r e n t ( $ 8 , 2 f i ) ) . d r 1 ' r e c i a t i o n o n o f i i c e f u r n i t u r c 1 $ l . i { ) 0 ) , u r i l i d c s ( $ 2 , . 3 0 0 ) , s r y -

c i a l t e l c p h o n e l r n e s ( 5 1 , 3 t ) 0 ) . a c o n n r c - t i r r n w r t h a n o n l i n e b r o k e r a t r l e s c r v i c e

( $ 2 , 9 0 0 ) , a n d r h c s a l a r v o i a f i n a n c i a l p l a n n c r ( $ l t . f t x l l . V a r i a b l c c o s u ; t n c l u d c p a Y -

m e n r s t o r h c f i n a n c i i r l p l a n n e r { 9 " h o i r e v e n u e ) , a t l v c r t i s i n g , \ ' l 2 9 i ' o i r e v e n u c ) . s u p -

p l i e s a n e l F x ) s r ; l g e \ 4 " / " e f r e v e n u e ) , a n d u s a g , e i e e s t o r t h e t e l e p h o n e l r n e s . r n d

c<tmputerizctl brokeragc servicc i.5% of r*'cnue)'

Regulrlmtntr

l. Usc rhc cunriburion margirr rario CVP tirrmula t{) e ()rrputc Big, llme's breakct'cn

revenur in dollars. If lhe averugc rradc leads to $tl(X) In revenur for Big Time. horv

man.v trades mtrst be made to break even?

2 . I I s e r h c i n c o m c s t a t e m c n t e q u i r t i o n a p p r o a c h t ( ) c ( ) m p u r e r h e d o l L l r r e v e n u e s

nccdcd t() carn a target monthly opcrating ineomc (tt $ l 1,2fi).

3. Graph Big Timc's CVP relatronships. Assume rhilt .r1 average rr,rde leads to $80{)

in revenue for Big Time. Show the brcakeven ;xlnr, thc sales rcvcnue line, tht

fixed cost llnc, the total cost linc. the operafing Lxs area, the operatrng, income

arca. and rhe sales in units {trades) and dollars s'hcrr monthly opcrirring inconlc

o f $ 1 1 , 2 ( ) 0 i r c a r n e d . T h c g r a p h s h o u l d r a n g t l r o t n 0 s o 8 ( ) u n i t s .

4 . S u p g t o s e r h a r r h e a v r r a g e r c v r n u e B i g T i m e e a r n s i n c r c a s c s t o $ 9 0 0 F e r t r a d c . ( . . r m p u t c t h c n e w b r e a k e v c n J x r i n t i n t r a d c s . H o u ' d r r s t h i s a t i e e t t h e

breakeven point?