Paste A1 x fx Chapter 5: Applying Excel Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 20,000 units S60 per unit S45 per unit S240,000 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 Variable expenses per unit Contribution margin per unit ? per unit 2 per unit 2 per unit 14 L6 CM ratio Variable expense ratio 0 1 Break-even in unit sales 2Break-even in dollar sales Compute the break-even ? units 4 Compute the margin of safety Margin of safety in dollars Margin of safety percentage 6 Compute the degree of operating leverage 0 Variable expenses Contribution margirn Fixed expenses Net operating income 4 Degree of operating leverage 6 Chapter 5 Form Required information The Chapter 5 Form worksheet is to be used to create your own worksheet version of the Review Problem example in the text. Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula"-B5". After entering formulas in all of the cells that contained question marks, verify that the doll amounts match the example in the text. Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating everage should be 10. If you do not get this answer, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will u this worksheet to answer the questions in Part 2. 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%. ercentage 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 he Data area ooks like this: 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7Fixed expenses 36,000 units $50 per unit 25 per unit $712,500 (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 incom 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 $19,000 and at that price, Thad estimates 600 units would be sold each year. The variable cost to produce and sell the cycles would be $13,300 per unit. The annual fixed cost would be $1,710,000. a. What is the break-even in unit sales? a. What is the break-even in unit sales? Break-even in unit sales b. What is the margin of safety in dollars? Margin of safety in dollars C. What is the degree of operating leverage? (Round your answer to 2 decimal places.) egree of operating everage
