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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. All answers must be entered as a formula. Click OK to begin. 1 Given the following information complete a CVP analysis 2 for JPL, Inc.: 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 per unit 14 Contribution margin per unit per unit 15 CM ratio per unit Variable expense ratio \begin{tabular}{|c|l} 18 & \\ 19 & 2. Compute the break-even point \end{tabular} 20 Break-even in unit sales 21 Break-cven in dollar sales units 22 3. Compute the margin of safety 24 Margin of safetv in dollars \begin{tabular}{|l|l} \hline 15 & \\ \hline 16 CM ratio \end{tabular} Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales units 23 3. Compute the margin of safety 24 Margin of safety in dollars 25 Margin of safety percentage 4. Compute the degree of operating leverage Sales 29 Variable expenses 30 Contribution margin 31 Fixed expenses 32 Net operating income

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