X8 FILE Paste 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 Clipboard A1 HOME Calibri INSERT BIU. 1 X Font 4 Init sales 5 elling price per unit 6 7 ixed expenses fariable expenses per unit PAGE LAYOUT 11 -A 16 M ratio 17 fariable expense ratio 18 A ¹ liven the following information complete a CVP analysis 2 or JPL, Inc.: 3 9 Use the data to answer the following. 10 CVP Analysis - Excel FORMULAS 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 % Alignment Number 11. Compute the CM ratio and variable expense ratio 12 elling price per unit 13 ariable expenses per unit 14 Contribution margin per unit 15 Conditional Format as Cell Formatting Table Styles Styles fxGiven the following information complete a CVP analysis E DATA REVIEW VIEW 11,200 units $75 per unit $45 per unit $210,000 c $75 per unit 45 per unit $30 per unit 40% 60% 7,000 units $525,000 caur 000 D Cells Sign In F X
X8 FILE Paste 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 Clipboard A1 HOME Calibri INSERT BIU. 1 X Font 4 Init sales 5 elling price per unit 6 7 ixed expenses fariable expenses per unit PAGE LAYOUT 11 -A 16 M ratio 17 fariable expense ratio 18 A ¹ liven the following information complete a CVP analysis 2 or JPL, Inc.: 3 9 Use the data to answer the following. 10 CVP Analysis - Excel FORMULAS 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 % Alignment Number 11. Compute the CM ratio and variable expense ratio 12 elling price per unit 13 ariable expenses per unit 14 Contribution margin per unit 15 Conditional Format as Cell Formatting Table Styles Styles fxGiven the following information complete a CVP analysis E DATA REVIEW VIEW 11,200 units $75 per unit $45 per unit $210,000 c $75 per unit 45 per unit $30 per unit 40% 60% 7,000 units $525,000 caur 000 D Cells Sign In F X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:FILE
Paste
Clipboard
A1
4
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.
&
Ee-
HOME
Calibri
INSERT
BIU. FR -
I
READY
Font
Jnit sales
5
elling price per unit
6 fariable expenses per unit
7 ixed expenses
x
11
17 fariable expense ratio
18
A
1
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
CH
Cells
In
E
6
Sign In
100%
Transcribed Image Text:X 8
FILE
Paste
Clipboard
A1
HOME
Calibri
INSERT
BIU.
15
16 M ratio
17 fariable expense ratio
18
I X
READY
FA
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
$
T
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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In
6
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100%
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