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1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 10,000 units

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1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 10,000 units $70 per unit $42 per unit $140,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? -even in dollar (b) What is the margin of safety percentage? Margin of safety ercenta (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 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% Percentage increasei t operating 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 1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Varable expenses per unit 7 Fixed expenses 12,000 units $70 per unit $42 per unit $140,000

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