4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 10,000 units $120 per unit 372 per unit $420,000 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit ? per unit 14 Variable expenses per unit ? per unit 15 Contribution margin per unit ? 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 ? units 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 Compute the degree of operating leverage Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage