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Given the following information complete a CVp analysis for JPL, Inc.: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units
Given the following information complete a CVp analysis for JPL, Inc.: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $75 per unit $45 per unit $210,000 Use the data to answer the following 1. Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit $75 per unit 45 per unit 30_per unit CM ratio 40% Variable expense ratio 2. Compute the break-even point Break-even in unit sales Break-even in dollar sales 7,000 units $525,000 6 CM ratio 40% 7 Variable expense ratio 92. Compute the break-even point 0 Break-even in unit sales 1 Break-even in dollar sales 7,000 units $525,000 3 3. compute the m argin of safety 4 Margin of safety in dollars 5 Margin of safety percentage 7 4. Compute the degree of operating leverage 8 Sales 9 Variable expenses O Contribution margin 1 Fixed expenses 2Net operating income 4 Degree of operating leverage 6
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