Question
Change all of the numbers in the data area of your worksheet so that it looks like this: Unit sales: 50000 selling price per unit:
Change all of the numbers in the data area of your worksheet so that it looks like this:
Unit sales: 50000
selling price per unit: $50
Variable expenses per unit: $30
fixed expenses: 900,000
If your formulas are correct, you should get the correct answers to the following questions.
(a) What is the break-even in dollar sales?
(b) What is the margin of safety percentage?
(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)
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%.
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