Data

Unit sales - 30,000 units

Selling price per unit $60 per unit

Variable Expenses per unit - $42 per unit

Fixed expenses - $486,000

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? (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%.

1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 30,000 units $60 per unit $42 per unit S486,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? Break-even in dollar sales (b) What is the margin of safety percentage? Margin of safety percentage (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 increase in net operating income