Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show equations to enter into each cell! thank you :) 1. Determine the break-even point 2. Compute the margin of sofety and explain its
please show equations to enter into each cell! thank you :)
1. Determine the break-even point 2. Compute the margin of sofety and explain its significance 3. Compute the degree of operating leverage to particular level of soles and explain how it can be used to predict changes in net operating income 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 11,200 units $75 per unit $45 per unit $210,000 8 9 Use the data to answer the following. 10 $75 per unit 45 per unit $30 per unit 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 13 Variable expenses per unit 14 Contribution margin per unit 15 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales 40% 60% units 22 23 3. Compute the margin of safety 24 Margin of safety in dollars 25 Margin of safety percentage 26 27 4. Compute the degree of operating leverage 4. Compute the degree of operating leverage 8 Sales 9 Variable expenses Contribution margin 1 Fixed expenses 2 Net operating income 3 4 Degree of operating leverage 5 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started