In this assignment you will be focusing on items covered in chapters 5 and 6.

ASSUME: The only cost items (fixed and variable) for producing and selling WIDGETS is provided in the EXCEL FILE ENTITLED: EXCEL ASSIGNMENT 2 .

You will need to do the following:

• Create a Scatter Diagram with Title, and labels for both axes.
• Create a section that implements the High-Low method of estimating variable and fixed costs.
• Use the software in EXCEL to generate a regression analysis that determines the fixed costs and the variable costs per unit. Develop the equation reflected by this regression analysis.
• Use the High-Low method to estimate the variable and fixed costs.
• Using info from (4) above, write the formula for estimating the costs at any level of sales within the relevant range. (We'll assume that range is from zero to 20,000 units per month.)
• Use this information (5) to create a proforma (PROJECTED) Contribution-format income statement for the upcoming month based upon selling 15,000 units at $34.00/unit.
• Create a CVP graph using the info from (4) and (5). Label the axes and the total revenue, total cost, total fixed cost, and total variable cost lines.
• Use this graph to find the BEQ.
• Use an excel formula to compute the BEQ. (Do the values match? They should!)

ITEMS 5 THROUGH 9 WILL BE BASED UPON INFORMATION CREATED FROM THE HIGH-LOW METHOD IN PART (4)