Variable Expenses Assignment

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 Relationships 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 the break-even Break-even in unit sales? units Break-even in dollar sales? Compute the margin of safety in dollars Margin of safety percentage Compute the degree of operating leverage Sales? Variable expenses Contribution margin Fixed expenses Net operating income ? ? Degree of operating leverage 2. Change all of the numbers in the data area of your worksheet so that it looks like this B A C Chapter 5: Applying Excel 1 2 Data 3 4 Unit sales 50,000 units per 60 Selling price per unit \$ unit per Variable expenses per unit S 30 unit 7 Fixed expenses 1,125,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales?

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