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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
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. CVP Analysis - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW 11 ' % Cell Alignment Number Conditional Format as Formatting Table Styles Cells Editing FI Styles FILE HOME INSERT Calibri Paste Clipboard BIU Font A1 fx A Given the following information complete a CVP analysis 1 Given the following information complete a CVP analysis 2 for JPL, Inc.: 3 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 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 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 B D 11,200 units $75 per unit $45 per unit $210,000 per unit per unit per unit units Sign In E F V
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