CVP Analysis 1. Determine the break-even point. 2. Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. Sign in Paste F B CVP Analysis - Excel FILE HOME INSERT PAGE FORMULAS DATA REVIEW VIEW X Calibri 11-AA Fe BLU- O. 4. AlignmehtumbeFonditioFormat Cell Cells Formattiras Styles Clipboard Font Styles A1 Given the following information complete a CVP analysis A B D E Given the following information complete a CV 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 13 Variable expenses per unit 14 Contribution margin 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 per mit per unit per unit 23 3. Compute the margin of safety 24 Marvin of safety in dollars Sheet1 READY Attempt(s) 4100% Hint ? LS Sign In 1 B .. CVP Analysis - Excel FILE HOME INSERT PAGE FORMULAS DATA REVIEW VIEW Calibri - 11 AA 96 Paste BIU A AlignmeNumbeonditioFormat Cell Cells Formattir as Styles Clipboard Font Styles E16 2 B D E F units A 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales 22 23 3. Compute the margin of safety 24 Margin of safety in dollars 25 Margin of safety percentage 26 27 4. Compute the degree of operating leverage 28 Sales 29 Variable expenses 30 Contribution margin 31 Fixed expenses 32 Net operating income 33 34 Degree of operating leverage 35 36 37 38 Sheet1 L READY Attempt(s) +0 Hint