X 5.2. FILE Paste 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. A1 X CB Clipboard HOME Calibri INSERT BIU. Font X PAGE LAYOUT 11 A T 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 Use the data to answer the following. 10 CVP Analysis - Excel DATA FORMULAS % Alignment Number A 1 Given the following information complete a CVP analysis 2 for JPL, Inc.: 3 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit B fx Given the following information complete a CVP analysis Conditional Format as Cell Formatting Table Styles Styles 11,200 units $75 $45 $210,000 Brow C REVIEW per unit per unit per unit 17 50 T VIEW D Cells Editing ? E - - 5 X Sign In F ( > A 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 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 Sheet1 READY *** + B C per unit per unit per unit units D E F 100% es 16 CM ratio 17 Variable expense ratio 18 A 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 READY Sheet1 + B C units D 0 E + F 100%