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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 Data 4 Unit sales 60,000 units 5 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 Data 4 Unit sales 60,000 units 5 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
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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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 Data 4 Unit sales 60,000 units 5 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 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. Percentage increase in net operating income %
Transcribed Image Text: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 Data 4 Unit sales 60,000 units 5 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 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. Percentage increase in net operating income %
A1 fx Chapter 5: Applying Excel A В 1 Chapter 5: Applying Excel 2 3 Data 20,000 units $60 per unit $45 per unit $270,000 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit $60 per unit 45 per unit $15 per unit 16 17 CM ratio 25% 18 Variable expense ratio 75% 19 20 Compute the break-even 18,000 units $1,080,000 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 120,000 10% 27 28 Compute the degree of operating leverage $ 1,200,000 900,000 300,000 $270,000 $ 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income 30,000 34 35 Degree of operating leverage 10.00 36 %24
Transcribed Image Text:A1 fx Chapter 5: Applying Excel A В 1 Chapter 5: Applying Excel 2 3 Data 20,000 units $60 per unit $45 per unit $270,000 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit $60 per unit 45 per unit $15 per unit 16 17 CM ratio 25% 18 Variable expense ratio 75% 19 20 Compute the break-even 18,000 units $1,080,000 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 120,000 10% 27 28 Compute the degree of operating leverage $ 1,200,000 900,000 300,000 $270,000 $ 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income 30,000 34 35 Degree of operating leverage 10.00 36 %24
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