Question
**I only need part 4a/b and part 5a-d**** I already have the other information. Data Unit sales - 30,000 units Selling price per unit $60
**I only need part 4a/b and part 5a-d**** I already have the other information.
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?
1,620,000
b.) what is the margin of safety percentage?
10%
c. What is the degree of operating leverage? (2 decimal places)
10.00
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%.
200%
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: 1Chapter 5: Applying Excel Data 4 Unit sales 5 Selling price per unit 6 Varable expenses per unit 7 Fixed expenses 36,000 units S60 per unit $42 per unit $486,000 (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Net operating in e (loss) (b) By what percentage did the net operating income increase? ercentage increase in net operating i 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 $17,000 and at that price, Thad estimates 800 units would be sold each year. The variable cost to produce and sell the cycles would be $11,900 per unit. The annual fixed cost would be $3,672,000 a. What is the break-even in unit sales? Break-even in unit salesStep by Step Solution
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