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 __________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 ___________