Question

A1 fix Given the following information complete a CVP analysis D E А B c С 1 Given the following information complete a CVR analysis 2 for JPL, Inc.: 3 4 Unit sales 11,200 units 5 Selling price per unit $75 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $210,000 8 9 Use the data to answer the following. 10 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit per unit 13 Variable expenses per unit per unit 14 Contribution margin per unit per unit 15 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales units 21 Break-even in dollar sales 22 23 13. Comoute the marein of safety

fill in the yellow shaded area with the formulas only please.

Answer 1

Answer: Problems relating to marginal costing and Leverages - is computation of 에 cm Ratio and variable expenses Ratio (A) selling Price per unit (B.) variable expenses Per unit contribution margin (A-B) $75 per unit $45 per unit Per unit B 30 peranir (0) contribution margin Ratio contribution poi $30 40% OR o.no Sales P.U. Variable expenses Ratio Variable expenses per unit sales per unit Bus Xiw 60% OR 0.60 $75 (2.) compute Break Even Point Break Even Point in units fixed cost $ 210,000 $30 perunit 7000 unit contribution per unit

Break even point sales Doller sale fixed expenses 36210,000 &525,000 Contribution margin Ratio О. Со (3.) computation of margin of safety margin of safety in Doller unit (actual sales Break even point sale ) in units 4200 unit (11,200-7000) units mos in Doller 4200 unit x $75 =$315,000 margin of safety in Percentage margin of safety Actual sales ie 4200 unit + yio = 37.5% 11200 unit (4) Computation of Degree of operating leverage sales (11200 unit x $75 ) $840,ooo Less or variable expenses (11200 x $us) = ($504,000) contribution (salls - variable exp) $336,000 Less: fixed expenses ($ 210,000 0 ) Net operating anume $ 126,000

Degree of operating Leverage contribution margin Net operating Income (336,000 = 2.6666 OR $ 120,000 2.67 Times conclusion (1.) compute cm Ratio and variable exp. Ratio Selling Price Per unit $75 per unit variable exp. Perunit 8 us peo unit contribution per unit P 30 Per unit cm Ratio uolo 60% variable exp. Ratio BEP in units 7000 unit $S25000 in $ (Doller sales (3) mos in Dolleas in percantage $315ood 37.5% (u.) Degree of operating leverage sales $800,000 Variable expenses Sou, 000 Contribution $336,000 S210,000 fixed Expenses Net operating Income Degree of operating loverge 8126,000 2.67 Times