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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

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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. ? X FILE CVP Analysis - Excel FORMULAS DATA INSERT PAGE LAYOUT REVIEW VIEW Sign in HOME X Calbr - 111 M Paste Cells Editing -A A 96 SA.. Alignment Number Conditional Format as Cell Formatting Table Styles Styles ho Clipboard Font B17 A D E F 13 c 1 Given the following information complete a CVP analysis 2 for JPL,Ine 3 4 Unit sales 11,200 units 3 Selling price per unit $75 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $210,000 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 Der unit 20 Principles of Accounting Fully Online PTS Saved B17 D E per unit per unit units 13 Variable expenses per unit 14 Contribution margin per unit 15 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 23 3. Compute the margin of safety 24 Margin of safety in dollars 23 Margin of safety percentage 22 4. Compute the degree of operating leverage Sales 29 Variable expenses o Contribution margin 31 Pused expenses 2 Net operating income 36 Degree of operating leverse Sheets Prov 1 of 6 Next > (

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