4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: A B 1 Chapter 5: Applying Excel 2 3 Data Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 72,000 units 10 per unit 6 per unit $ 216,000 4 (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Net operating income (loss) 90,000 X

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Please help me with 4(a). Thanks! :)

(b) What is the margin of safety percentage?
Answer is complete and correct.
Margin of safety percentage
10 O %
(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Answer is complete and correct.
Degree of operating leverage
10.00
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%.
O Answer is complete and correct.
Percentage increase in net operating income
200 O %
4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks
like this:
A
B
1
Chapter 5: Applying Excel
2
3
Data
4
Unit sales
72,000 units
Selling price per unit
10 per unit
6.
Variable expenses per unit
6 per unit
7
Fixed expenses
$ 216,000
(a) What is net operating income? (Negative amount should be indicated by a minus sign.)
X Answer is complete but not entirely correct.
Net operating income (loss)
90,000 x
Transcribed Image Text:(b) What is the margin of safety percentage? Answer is complete and correct. Margin of safety percentage 10 O % (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Answer is complete and correct. Degree of operating leverage 10.00 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%. O Answer is complete and correct. Percentage increase in net operating income 200 O % 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: A B 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 72,000 units Selling price per unit 10 per unit 6. Variable expenses per unit 6 per unit 7 Fixed expenses $ 216,000 (a) What is net operating income? (Negative amount should be indicated by a minus sign.) X Answer is complete but not entirely correct. Net operating income (loss) 90,000 x
x v fx
B7
270000
A
В
1 Chapter 5: Applying Excel
2
3 Data
4 Unit sales
20,000 units
5 Selling price per unit
6 Variable expenses per unit
7 Fixed expenses
$60 per unit
$45 per unit
$270,000
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
29 Sales
30 Variable expenses
31 Contribution margin
32 Fixed expenses
33 Net operating income
$270,000
30,000
$
34
35 Degree of operating leverage
10.00
2. Change all of the numbers in the data area of your worksheet so that it looks like this:
A
B
Chapter 5: Applying Excel
2
Data
Unit sales
5 Selling price per unit
6 Variable expenses per unit
7 Fixed expenses
4
60,000 units
10 per unit
6 per unit
$ 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?
O Answer is complete and correct.
Break-even in dollar sales
540,000 O
Transcribed Image Text:x v fx B7 270000 A В 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 20,000 units 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses $60 per unit $45 per unit $270,000 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 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income $270,000 30,000 $ 34 35 Degree of operating leverage 10.00 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A B Chapter 5: Applying Excel 2 Data Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 4 60,000 units 10 per unit 6 per unit $ 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? O Answer is complete and correct. Break-even in dollar sales 540,000 O
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