
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1. Determine the break-even point.
2. Compute the margin of safety and explain its significance.
3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income.
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Jnit sales
5
elling price per unit
6 fariable expenses per unit
7 ixed expenses
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17 fariable expense ratio
18
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Given the following information complete a CVP analysis
2 or JPL, Inc.:
9 Use the data to answer the following.
10
PAGE LAYOUT
14 Contribution margin per unit
15
16 M ratio
11. Compute the CM ratio and variable expense ratio
12 elling price per unit
13 ariable expenses per unit
19. Compute the break-even point
20 Ireak-even in unit sales
21 Ireak-even in dollar sales
22
23. Compute the margin of safety
24 Margin of safety in dollars
Sheet1
CVP Analysis - Excel
FORMULAS
%
Alignment Number Conditional Format as Cell
Formatting Table Styles-
Styles
Given the following information complete a CVP analysis
DATA REVIEW VIEW
B
11,200 units
$75 per unit
$45 per unit
$210,000
$75 per unit
45 per unit
$30 per unit
40%
60%
C
7,000 units
$525,000
$315.000
D
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E
6
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FILE
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A1
HOME
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BIU.
15
16 M ratio
17 fariable expense ratio
18
I X
READY
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29 fariable expenses
30 Contribution margin
31 ixed expenses
Fant
19. Compute the break-even point
20 Ireak-even in unit sales
21 Ireak-even in dollar sales
22
32 let operating income
33
23. Compute the margin of safety
24 Margin of safety in dollars
25 Margin of safety percentage
26
11
Sheet1
PAGE LAYOUT
34 Degree of operating leverage
35
36
37
38
27. Compute the degree of operating leverage
28 ales
A A
F
%
Alignment Number
FORMULAS
CVP Analysis - Excel
Conditional Format as Cell
Formatting Table Styles-
Styles
Given the following information complete a CVP analysis
$
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S
DATA REVIEW VIEW
B
40%
60%
7,000 units
$525,000
$315,000
37.50%
840,000
504,000
336,000
210,000
126,000
C
2.67
4
Gall
D
Cells
E
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