1 Chapter 5: Applying Excel 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 $240,000 8 9 Enter a formula 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 Selling price per unit $60 per unit 14 Variable expenses per unit 45 per unit 15 Contribution margin 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 23 24 Compute the margin of safety $15 per unit 25% 75% 16,000 units $960,000 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 34 456 35 Degree of operating leverage 36 $240,000 20%