2. Change all of the numbers in the data area of your worksheet so that it looks like this:AВChapter 5: Applying Excel2Data4Unit sales60,000 units5Selling price per unit$10 per unit6Variable expenses per unit$6 per unit7Fixed expenses$ 216,000If your formulas are correct, you should get the correct answers to the following questions.(a) What is the break-even in dollar sales?Break-even in dollar sales(b) What is the margin of safety percentage?Margin of safety percentage%(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)Degree of operating leverage3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in netoperating income if unit sales increase by 20%.Percentage increase in net operating income% A1fxChapter 5: Applying ExcelAВ1 Chapter 5: Applying Excel23 Data20,000 units$60 per unit$45 per unit$270,0004 Unit sales5 Selling price per unit6 Variable expenses per unit7 Fixed expenses89 Enter a formula into each of the cells marked with a ? below10 Review Problem: CVP Relationships1112 Compute the CM ratio and variable expense ratio13 Selling price per unit14 Variable expenses per unit15 Contribution margin per unit$60 per unit45 per unit$15 per unit1617 CM ratio25%18 Variable expense ratio75%1920 Compute the break-even18,000 units$1,080,00021 Break-even in unit sales22 Break-even in dollar sales2324 Compute the margin of safety25 Margin of safety in dollars26 Margin of safety percentage120,00010%2728 Compute the degree of operating leverage$ 1,200,000900,000300,000$270,000$29 Sales30 Variable expenses31 Contribution margin32 Fixed expenses33 Net operating income30,0003435 Degree of operating leverage10.0036%24

Margin of safety means the difference between the budget sales and breakeven sales. It means the…

2. Change all of the numbers in the data area of your worksheet so that it looks like this: A В Chapter 5: Applying Excel 2 3 Data 4 Unit sales 60,000 units Selling price per unit $ 10 per unit 6 Variable expenses per unit $ 6 per unit 7 Fixed expenses $ 216,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? Break-even in dollar sales (b) What is the margin of safety percentage? Margin of safety percentage % (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage

2. Change all of the numbers in the data area of your worksheet so that it looks like this: A В Chapter 5: Applying Excel 2 3 Data 4 Unit sales 60,000 units Selling price per unit $ 10 per unit 6 Variable expenses per unit $ 6 per unit 7 Fixed expenses $ 216,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? Break-even in dollar sales (b) What is the margin of safety percentage? Margin of safety percentage % (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 2
Claudia wants to perform a break-even analysis on her very busy casual-dining operation. She has obtained the following operating results from last month's income statement and POS system sales records: Guests served: Sales: Variable costs: Fixed costs: Total costs: Profit: 25,000 $210,000 $75,000 $110,000 $185,000 $25,000
estion 2: vin Question 1: a. Explain the meaning of breakeven point and the benefit of using it in businesses. b. Given the following information for SAMAR Company, answer the following questions: Selling price (per unit) Number of units sold Variable cost (per unit) Fixed cost i.Calculate contribution margin ratio ii.Find Breakeven Point in amount iii.Find Breakeven Point in units 240 R.O 700 R.O 130 R.O 560,000 R.O
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