Formatting Clipboard Font Alignment Number A B C D F G 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 45 per unit Contribution margin per unit $15 per unit CM ratio 25% Variable expense ratio 75% Compute the break-even Break-even in unit sales 16,000 units Break-even in dollar sales $960,000 Compute the margin of safety Margin of safety in dollars $240,000 Margin of safety percentage 20% Compute the degree of operating leverage Sales $1,200,000 Variable expenses 900,000 Contribution margin 300,000 Fixed expenses $240,000 Net operating income $ 60,000\fRequired information a. What is the break-even in unit sales? Break-even in unit sales b. What is the margin of safety in dollars? Margin of safety in dollars c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required information c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $8,400 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,183,000 by reducing advertising expenses, but he still hopes to sell 500 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Net operating income (loss) Q Search L