Given the following data, answer the questions below the table: ---------------------------------------------------------------------------------------------------------------------- Data Unit sales
- Given the following data, answer the questions below the table:
----------------------------------------------------------------------------------------------------------------------
|
Data |
||
|
Unit sales |
30,000 |
units |
|
Selling price per unit |
$10 |
per unit |
|
Variable expenses per unit |
$5 |
per unit |
|
Fixed expenses |
$120,000 |
----------------------------------------------------------------------------------------------------------------------
a) What is the break-even in dollar sales?
b) What is the margin of safety percentage?
c) What is the degree of operating leverage? (Round your final answer to 2 decimal places.)
d) Using the degree of operating leverage, calculate the percentage change in net operating income if unit sales increase by 20%.
Homework Answers
|
Contribution margin ratio = Contribution margin/Sales price = (10-5)/10 = 50% Breakeven in dollars = Fixed cost/Contribution margin ratio = 120,000/50% = 240,000 |
|
Margin of Safety = (Sales - Breakeven sales) /Sales Sales = 30,000*10 = 300,000 = (300,000-240,000)/300,000 = 20% |
|
Contribution margin = (10-5)*30,000 = 150,000 Net operating income = Contribution margin - Fixed cost = 150,000 - 120,000 = 30,000 Degree of operating leverage = Contribution margin/Net operating income = 150,000/30,000 = 5 |
|
Increase in net operating income = increase in sales* degree of operating leverage = 20 * 5 = 100% increase |
Add Answer to:
Given the following data, answer the questions below
the table:
----------------------------------------------------------------------------------------------------------------------
Data
Unit sales
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Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
how do i answer these questions using this spreadsheet at the bottom 2. Change all of...
how do i answer these questions using this spreadsheet at the
bottom
2. Change all of the numbers in the data area of your worksheet so that it looks like this: BC 1 Chapter 6: Applying Excel 2 3 4 5 6 7 Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 70,000 units $ 20 per unit $ 12 per unit $ 448,000 If your formulas are correct, you should get the correct answers to...
please use excel to answer and show formulas thank you!! Chapter 5: Applying Excel Data Unit...
please use excel to answer and show formulas thank you!!
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hey this is a milti-lart question. the info in the table is for all parts. Oslo...
hey
this is a milti-lart question. the info in the table is for all
parts.
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Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
how do i answer these questions using this spreadsheet at the
bottom
2. Change all of the numbers in the data area of your worksheet so that it looks like this: BC 1 Chapter 6: Applying Excel 2 3 4 5 6 7 Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 70,000 units $ 20 per unit $ 12 per unit $ 448,000 If your formulas are correct, you should get the correct answers to...
please use excel to answer and show formulas thank you!!
Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 40,000 units $50 per unit $35 per unit $570,000 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 $50 per unit 35 per unit $15...
Chapter 3: Applying Excel: Exercise (Part 2 of 2) 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 1 Chapter 3: Applying Excel 3 Data 4 Unit Sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 40,000 units $40 per unit $16 per unit $720,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even...
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11 Part Question
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hey
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