Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 1

PROBLEM DATA
Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year:

The selling price of Poleski's single product is $16. In recent years, profits have fallen and Poleski's management is now considering a number of alternatives. Poleski wants to have a net income next year of $250,000, but expects to sell only 120,000 units unless some changes are made.
REQUIREMENT
The president of Poleski has asked you to calculate the company's projected net income (assuming 120,000 units are sold) and the sales needed to achieve the company's net income objective for next year. Also, compute Poleski's contribution margin per unit, contribution margin ratio, and break-even point for next year. The worksheet CVP has been provided to assist you. Note that the data from the problem have already been entered into the Data Section of the worksheet.