Formatting Clipboard Font Alignment Number A B C D F G 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 Compute the CM ratio and variable expense ratio Selling price per unit $60 per unit Variable expenses per unit 45 per unit Contribution margin per unit $15 per unit CM ratio 25% Variable expense ratio 75% Compute the break-even Break-even in unit sales 16,000 units Break-even in dollar sales $960,000 Compute the margin of safety Margin of safety in dollars $240,000 Margin of safety percentage 20% Compute the degree of operating leverage Sales $1,200,000 Variable expenses 900,000 Contribution margin 300,000 Fixed expenses $240,000 Net operating income $ 60,000\fA Maps F YouTube PioneerWeb - Univ.. mypark Course Hero G Google E Feed | Linkedin C chegg lication Assignment i Saved Required information 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 % 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 B C 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 72,000 units 5 Selling price per unit 20 per unit 6 Variable expenses per unit $ 14 per unit 7 Fixed expenses $ 180,000 plication Assignment i Saved Required information a) What is net operating income? (Negative amount should be indicated by a minus sign.) Net operating income (loss) (b) By what percentage did the net operating income increase? Percentage increase in net operating income 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 $10,000 and at that price, Thad estimates 500 units would be sold each year. The variable cost to produce and sell the cycles would be $7,000 per unit. The annual fixed cost would be $1,425,000. a. What is the break-even in unit sales? Q Search (DELL C