Question

Paste B I U a. Av 191 Merge & Center $ % ) A1 ✓ fx Chapter 5: Applying Excel D E F G H А B 1 Chapter 5: Applying Excel 2 3 Data 4 Unit sales 20,000 units 5 Seling price per unit $60 per un 6 Variable expenses per unit $45 per un 7 Fixed expenses $240,000 B 9 Enfer a formule into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Seling price per unit 7 per unit 14 Variable expenses per unit 2 per unit 15 Contribution margin per unit ? per unit 16 7 17 CM ratio 18 Variable expense ratio ? 19 20 Compute the break-even 21 Break-even in unit sales ? units 22 Break-even in dollar sales ? 23 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 7 30 Variable expenses 7 31 Contribution margin ? 32 Fixed expenses ? 33 Net operating income ? 34 35 Degree of operating leverage ? 36 37 38 39 40

please answer showing cell/sum functions (example: =B5-B8) thank you!

Answer 1

D А B с c 1 2 3 Data 4 Unit Sales 20,000 Units 5 Selling price per unit $60 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $2,40,000 8 9 10 11 12 1. Compute the CM ratio and variable expense ratio 13 Selling price per unit $60 per unit 14 Variable expenses per unit $45 per unit 15 Contribution margin per unit $15 per unit 16 17 CM ratio 25% 18 Variable expense ratio 75% 19 20 2. Compute the break-even point 21 Break-even in unit sales 16000 Units 22 Break-even in dollar sales $9,60,000 23 24 3. Compute the margin of safety 25 Margin of safety in units 4,000 Units 26 Margin of safety in dollar $2,40,000 27 28 4. Compute the degree of operating leverage 29 Sales $12,00,000 30 Variable expenses $9,00,000 31 Contribution Margin $3,00,000 32 Fixed expenses $2,40,000 33 Net operating Income $60,000 34 35 Degree of operating leverage 5.00 times

With formulas

A B с D 1 2 3 Data 4 Unit Sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 20000 60 Units per unit per unit 45 240000 9 =B5 =B6 =B13-B14 per unit per unit per unit =B15/B13 =B14/B13 Units =B7/B15 =B7/B17 10 11 12 1. Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit 16 17 CM ratio 18 Variable expense ratio 19 Compute reak-even point 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 3. Compute the margin of safety 25 Margin of safety in units 26 Margin of safety in dollar 27 28 4. Compute the degree of operating leverage 29 Sales 30 Variable expenses 31 Contribution Margin 32 Fixed expenses 33 Net operating Income 34 35 Degree of operating leverage Units =B4-B21 =(B4*B5)-B22 =B4*B5 =B4*B6 =B29-B30 =B7 =B31-B32 =B31/B33 times

Note:

1. Contribution margin per unit = Selling price per unit - Variable expense per unit

CM ratio = Contribution margin per unit / Selling price per unit * 100

Variable expense ratio = Variable expense per unit / Selling price per unit * 100

2. Break even in units = Fixed cost / Contribution margin per unit

Break even in dollar = Fixed cost / Contribution margin ratio

3. Margin of safety in units = Actual sales units - Break even units

Margin of safety in dollars = Actual sales - Break even sales

4. Degree of operating leverage = Contribution / Net operating Income

All the best...