For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. Required: . Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating everage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
The Chapter 5 Form worksheet appearing below recreates the Review Problem example in the text.
Download the Applying Excel form and enter formulas in all cells that contain question marks.
For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar
amounts match the example in the text.
Required:
1. Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating
leverage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.
Transcribed Image Text:[The following information applies to the questions displayed below.] The Chapter 5 Form worksheet appearing below recreates the Review Problem example in the text. Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. Required: 1. Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating leverage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.
Chapter 5: Applying Excel
Data
Unit sales
Selling price per unit
Variable expenses per unit
Fixed expenses
Compute the CM ratio and variable expense ratio
Selling price per unit
Variable expenses per unit
Contribution margin per unit
Enter a formula into each of the cells marked with a ? below
Review Problem: CVP Relationships
CM ratio
Variable expense ratio
Compute the break-even point
Break-even in unit sales
Break-even in dollar sales
Compute the margin of safety
Margin of safety in dollars
Margin of safety percentage
Compute the degree of operating leverage
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
20,000 units
$60
$45 per unit
per unit
Degree of operating leverage
$240,000
? per unit
? per unit
? per unit
?
?
? units
?
?
?
?
?
?
?
?
?
Transcribed Image Text:Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships CM ratio Variable expense ratio Compute the break-even point Break-even in unit sales Break-even in dollar sales Compute the margin of safety Margin of safety in dollars Margin of safety percentage Compute the degree of operating leverage Sales Variable expenses Contribution margin Fixed expenses Net operating income 20,000 units $60 $45 per unit per unit Degree of operating leverage $240,000 ? per unit ? per unit ? per unit ? ? ? units ? ? ? ? ? ? ? ? ?
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