Chapter 6: Applying Excel: Excel Worksheet (Part 1 of 2) (Algo)

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text.

Check your worksheet by changing the fixed expenses to $270,000. If your worksheet is operating properly, the degree of operating leverage should be 10. If you do not get this answer, find the errors in your worksheet and correct them.

Chapter 6: Applying Excel
Data
Unit sales	20,000	units
Selling price per unit	$60	per unit
Variable expenses per unit	$45	per unit
Fixed expenses	$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	$60	per unit
Variable expenses per unit	?	per unit
Contribution margin 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
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	?