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    PLEASE USE MS EXCEL.

    The Walton Company produces a specific item with the following information:

    Sales Price $400 per unit
    Variable Costs $100 per unit
    Fixed Costs $150,000
    Units Produced and Sold 2,000

    Please use MS EXCEL to:

    1) Calculate Net Income
    2) Calculate the Contribution Margin per unit
    3) Calculate the Contribution Margin Ratio
    4) If the Walton Company sells 500 more additional units, by what amount will net income increase?
    5) If the Walton Company has an additional $20,000 in sales, by what amount will net income increase?

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    Solution Preview

    Please see attached file:

    PLEASE USE MS EXCEL.
    The Walton Company produces a specific item with the following information:
    Sales Price $400 per unit
    Variable Costs $100 per unit
    Fixed Costs $150,000
    Units Produced and Sold 2,000
    Please use MS EXCEL to:

    1)      Calculate Net Income

    Units Produced and Sold= 2,000
    Selling Price= $400 per unit
    Variable cost= $100 per unit

    Revenue $800,000 =2,000. x $400.
    Less Variable Cost $200,000 =2,000. x $100.
    Contribution $600,000 =$800,000.-$200000.
    Less Fixed Cost $150,000
    Net Income $450,000 =$600,000.-$150000.

    Answer: Net Income= $450,000

    2)      Calculate the ...

    Solution Summary

    MS Excel is used for calculating net income, contribution margin, contribution margin ratio etc.

    $2.49

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