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CM ratio Variable expense ratio 2. Compute the break-even point Break-even in unit sales units Break-even in dollar sales 3. Compute the margin of safety Margin of safety in dollars Margin of safety percentage

CM ratio Variable expense ratio 2. Compute the break-even point Break-even in unit sales units Break-even in dollar sales 3. Compute the margin of safety Margin of safety in dollars Margin of safety percentage

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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JPL, Inc. has provided its sales and expense data for the most recent period.  The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations.  Use the information included in the Excel Simulation and the Excel functions described below to complete the task.

CVP Analysis - Excel FILE Sign In HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 A A Paste BIU- Alignment Number Conditional Format as Cell Cells Editing Formatting - Table- Styles- Clipboard a Font Styles A1 fe Given the following information complete a CVP analysis A B D 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 32 Net operating income 33 34 Degree of operating leverage 35 36 37 38 Sheet1 >
Transcribed Image Text:CVP Analysis - Excel FILE Sign In HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 A A Paste BIU- Alignment Number Conditional Format as Cell Cells Editing Formatting - Table- Styles- Clipboard a Font Styles A1 fe Given the following information complete a CVP analysis A B D 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 32 Net operating income 33 34 Degree of operating leverage 35 36 37 38 Sheet1 >
CVP Analysis - Excel Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW -11 A A % Calibri Paste BIU - A - Alignment Number Conditional Format as Cell Cells Editing Formatting - Table- Styles- Clipboard G Font Styles k Given the following information complete a CVP analysis A1 A B D E F 1 Given the following information complete a CVA analysis 2 for JPL, Inc.: 3 4 Unit sales 11,200 units 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses $75 per unit $45 per unit $210,000 9 Use the data to answer the following. 10 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 13 Variable expenses per unit per unit per unit 14 Contribution margin per unit per unit 15 16 СM 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 • .. Sheet1
Transcribed Image Text:CVP Analysis - Excel Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW -11 A A % Calibri Paste BIU - A - Alignment Number Conditional Format as Cell Cells Editing Formatting - Table- Styles- Clipboard G Font Styles k Given the following information complete a CVP analysis A1 A B D E F 1 Given the following information complete a CVA analysis 2 for JPL, Inc.: 3 4 Unit sales 11,200 units 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses $75 per unit $45 per unit $210,000 9 Use the data to answer the following. 10 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 13 Variable expenses per unit per unit per unit 14 Contribution margin per unit per unit 15 16 СM 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 • .. Sheet1
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