JPL, Inc. has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows therelated CVP Analysis computations. Use the information included in the Excel Simulation and the Excel functions described below to complete thetask.• Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, =B5" wasentered, the formula would output the result from cell B5. or 75 in this example.• Beslc Math functlons: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: -(plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply). and / (forward slash to divide). From the Excel Simulation below, if ina blank cell "=85+B6" was entered, the formula would add the values from those cells and output the result, or 120 in this example. If usingthe other math symbols the result would output an appropriate answer for its function.国日らCVP Analysis - ExcelFILEHOMEINSERTPAGE LAYOUTFORMULASDATAREVIEWVIEWSign InCalibri-11A A%PasteBIU-Alignment NumberConditional Format asCellCellsEditingFormatting Table StylesClipboardFontStylesA1fxGiven the following information complete a CVP analysisAD34 Unit sales11,200 units5 Selling price per unit6 Variable expenses per unit7 Fixed expenses$75 per unit$45 per unit$210,0009 Use the data to answer the fallowing.1011 1. Compute the CM ratio and variable expense ratio12 Selling price per unit13 Variable expenses per unit14 Contribution margin per unitper unitper unitper unit1516 CM ratio17 Variable expense ratio1819 2. Compute the break-even paint20 Break-even in unit sales21 Break-even in dollar salesunits2223 3. Compute the margin of safety24 Margin of safety in dollars25 Margin of safety percentage2627 4. Compute the degree of operating leverage28 Sales29 Variable expenses30 Contribution margin31 Fixed expenses32 Net operating income3334 Degree of aperating leverageSheet1READY10%

4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 11,200 units $75 per unit $45 per unit $210,000 Use the data to answer the following 1 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 3 Variable expenses per unit 14 Contribution margin per unit per unit per unit per unit 15 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales units 22 23 3. Compute the margin of safety 24 Margin of safety in dollars 25 Margin of safety percentage 26 27 4. Compute the degree of operating leverage 28 Sales 29 Variable expenses 30 Contribution margin 31 Fixed expenses 22 Net operating income 33 34 Degree of operating leverage

4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 11,200 units $75 per unit $45 per unit $210,000 Use the data to answer the following 1 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 3 Variable expenses per unit 14 Contribution margin per unit per unit per unit per unit 15 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales units 22 23 3. Compute the margin of safety 24 Margin of safety in dollars 25 Margin of safety percentage 26 27 4. Compute the degree of operating leverage 28 Sales 29 Variable expenses 30 Contribution margin 31 Fixed expenses 22 Net operating income 33 34 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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