Question

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 dollar 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 leverage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.

1 Chapter 3: Applying Excel 5 Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 20,000 units $60 per unit $45 per unit $240,000 7 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit ? per unit ? per unit ? per unit 16 17 CM ratio 18 Variable expense ratio 19 20 Compute the break-even 21 Break-even in unit sales 22 Break-even in dollar sales ? units 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 27 ? 28 Compute the degree of operating leverage 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income 35 Degree of operating leverage

Answer 1

Solution:

Excel 8 - Microsoft Excel X 90 = File Home Insert Page Layout Formulas Data Review View - 2 x fr EO ? A o @ Calculate Now Insert Function AutoSum Recently Financial Logical Text Date & Lookup & - Used Time Reference Function Library Math & Trig More Functions A a Define Name f Use in Formula Name Manager Create from Selection Defined Names Trace Precedents 5. Show Formulas Trace Dependents Error Checking Remove Arrows" Evaluate Formula Formula Auditing Watch Window Calculation Calculate Sheet Options Calculation 128 C D E F G H K L M N O Q R S T U V 3 4 Data Units sales Selling price per unit Variable expenses per unit Fixed expenses 20000 units $60.00 Per unit $45.00 Per unit $240,000.00 7 10 Review problem: CVP Relationships 11 12 Compute the CM ratio and Variable expenses ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit $60.00 Per unit $45.00 Per unit $15.00 Per unit 25 7596 17 CM Ratio 18 Variable expense ratio 19 20 Compute the breakeven 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 16000 units $960,000.00 $240,000.00 2096 27 28 Compute the degree of operating leverage 29 Sales $1,200,000.00 30 Variable expenses $900,000.00 31 Contribution margin $300,000.00 32 Fixed expenses $240,000.00 33 Net operating income $60,000.00 34 35 Degree of operating leverage 36 M Sheet156 (66) Sheet153 (27) Sheet189 (4) Ready Circular References K Sheet691 Sheet692 Sheet403 (2) Sheet694 Sheet153 (29) I BOU 76% - o e S oo Answers Answers Accounting quest... accounting quest. Ky Microsoft Bed -. W Microsoft Excel - ... W S S Skype 6:40 AM 2/6/2020

Excel 8 - Microsoft Excel X 90 = File Home Insert Page Layout Formulas Data Review View - 2 x fr EDE? @ Calculate Now Insert Function AutoSum Recently Financial Logical Text Date & Lookup & Math More Used Time Reference & Trig Functions Function Library A a Define Name f Use in Formula Name Manager Create from Selection Defined Names Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Evaluate Formula Formula Auditing Watch Window Calculation Calculate Sheet Options Calculation D15 C 3 4 5 20000 Data Units sales Selling price per unit Variable expenses per unit Fixed expenses 60 units Per unit Per unit 45 240000 7 -B5 =B6 =B13-B14 Per unit Per unit Per unit 10 Review problem: CVP Relationships 11 12 Compute the CM ratio and Variable expenses ratio 13 Selling price per unit 14 Variable expenses per unit Contribution margin per unit 16 17 CM Ratio 18 Variable expense ratio 19 20 Compute the breakeven 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage =B15/B13 =B14/B13 units =B7/B15 =B7/B17 =(B4*85)-822 =B25/(B4*85) 27 28 Compute the degree of operating leverage 29 Sales 30 Variable expenses Contribution margin 32 Fixed expenses 33 Net operating income 34 35 Degree of operating leverage 36 KI M Sheet156 (66) Sheet153 (27) Ready Circular References =B4B5 -B4*B6 =B29-130 =B7 =B31-B32 =B31/B33 Sheet189 (4) Sheet691 Sheet692 Sheet403 (2) Sheet694 Sheet153 (29) | BO. 76% - @ o e ☺ o Sowels Answers Accounting quest... acounting gues. Ky Microtec... 0 -+ 6:41 AM 2/6/2020 Microsoft Excel -... W S stype Skype