Downioad the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell 813 enter the formula " 85 : After entering formulas in all of the cells that contained question marks, verify that the doliar amounds match the example in the fext. Oreck your workheet by changing the Fowd expenset to $270,000. If your worksheet is opersing propetly, the degree of operating leverage should be 10 . If you do not get this answer, find the enron in your worktheet and corroct them. Save your completed Applying Excel form to your computer and then uplead la bere by clicking "Browse." Next, ellek "Snve." You will use this worksheet to answer the questions in Part 2. downioad reterence file upload a respense fle (15ME max) Chapter 6: Applying Excel Data Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses per unit $45 per unit Fixed expenses $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit \begin{tabular}{l|l} 17 & \\ 17 & CM ratio \\ 18 & Variable expense ratio \end{tabular} 20 Compute the break-even 21 Break-even in unit sales 22 Break-even in dollar sales ? units 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 27 28 Compute the degree of operating leverage 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income ? 35 Degree of operating leverage ? per unit ? per unit ? per unit ? ? ? ? ? 36 37 38 The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Re text. 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 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%. 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: (a) What is net operating income? (Negative amount should be indicated by a minus sign.) (b) By what percentage did the net operating income increase? 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $14,000 and at that price, Thad estimates 100 units would be sold each year. The variable cost to produce and sell the cycles would be $10,500 per unit. The annual fixed cost would be $280,000. a. What is the break-even in unit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $11,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $264,000 by reducing advertising expenses, but he still hopes to sell 100 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Downioad the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell 813 enter the formula " 85 : After entering formulas in all of the cells that contained question marks, verify that the doliar amounds match the example in the fext. Oreck your workheet by changing the Fowd expenset to $270,000. If your worksheet is opersing propetly, the degree of operating leverage should be 10 . If you do not get this answer, find the enron in your worktheet and corroct them. Save your completed Applying Excel form to your computer and then uplead la bere by clicking "Browse." Next, ellek "Snve." You will use this worksheet to answer the questions in Part 2. downioad reterence file upload a respense fle (15ME max) Chapter 6: Applying Excel Data Unit sales 20,000 units Selling price per unit $60 per unit Variable expenses per unit $45 per unit Fixed expenses $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relationships 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit \begin{tabular}{l|l} 17 & \\ 17 & CM ratio \\ 18 & Variable expense ratio \end{tabular} 20 Compute the break-even 21 Break-even in unit sales 22 Break-even in dollar sales ? units 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 27 28 Compute the degree of operating leverage 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income ? 35 Degree of operating leverage ? per unit ? per unit ? per unit ? ? ? ? ? 36 37 38 The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Re text. 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 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%. 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: (a) What is net operating income? (Negative amount should be indicated by a minus sign.) (b) By what percentage did the net operating income increase? 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $14,000 and at that price, Thad estimates 100 units would be sold each year. The variable cost to produce and sell the cycles would be $10,500 per unit. The annual fixed cost would be $280,000. a. What is the break-even in unit sales? b. What is the margin of safety in dollars? c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $11,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $264,000 by reducing advertising expenses, but he still hopes to sell 100 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.)