se help me with 5d

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Please help me with 5d

(b) What is the margin of safety percentage?
Margin of safety percentage
10 %
(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Degree of operating leverage
10.00
3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net
operating income if unit sales increase by 20%.
Percentage increase in net operating income
|%
4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks
like this:
A
B
1
Chapter 5: Applying Excel
2
Data
4
Unit sales
72,000 units
5 Selling price per unit
6 Variable expenses per unit
10 per unit
6 per unit
$ 216,000
7
Fixed expenses
(a) What is net operating income? (Negative amount should be indicated by a minus sign.)
Net operating income (loss)
90,000
(b) By what percentage did the net operating income increase?
Percentage increase in net operating income
200 %
5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that
was popular in the 1930s. The retro-look cycle would be sold for $18,000 and at that price, Thad estimates 700 units would be sold
each year. The variable cost to produce and sell the cycles would be $13,500 per unit. The annual fixed cost would be $2,362,500.
a. What is the break-even in unit sales?
Break-even in unit sales
525
b. What is the margin of safety in dollars?
Margin of safety in dollars
3,150,000
c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Degree of operating leverage
4.00
Transcribed Image Text:(b) What is the margin of safety percentage? Margin of safety percentage 10 % (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 10.00 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%. Percentage increase in net operating income |% 4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this: A B 1 Chapter 5: Applying Excel 2 Data 4 Unit sales 72,000 units 5 Selling price per unit 6 Variable expenses per unit 10 per unit 6 per unit $ 216,000 7 Fixed expenses (a) What is net operating income? (Negative amount should be indicated by a minus sign.) Net operating income (loss) 90,000 (b) By what percentage did the net operating income increase? Percentage increase in net operating income 200 % 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $18,000 and at that price, Thad estimates 700 units would be sold each year. The variable cost to produce and sell the cycles would be $13,500 per unit. The annual fixed cost would be $2,362,500. a. What is the break-even in unit sales? Break-even in unit sales 525 b. What is the margin of safety in dollars? Margin of safety in dollars 3,150,000 c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 4.00
А1
fx
Chapter 5: Applying Excel
1 Chapter 5: Applying Excel
3 Data
4 Unit sales
5 Selling price per unit
6 Variable expenses per unit
7 Fixed expenses
20,000 units
$60 per unit
$45 per unit
$270,000
8
9 Enter a formula into each of the cells marked with a ? below
10 Review Problem: CVP Relationships
11
12 Compute the CM ratio and variable expense ratio
13 Selling price per unit
14 Variable expenses per unit
15 Contribution margin per unit
$60 per unit
45 per unit
$15 per unit
16
17 CM ratio
25%
18 Variable expense ratio
75%
19
20 Compute the break-even
21 Break-even in unit sales
18,000 units
22 Break-even in dollar sales
$1,080,000
23
24 Compute the margin of safety
25 Margin of safety in dollars
26 Margin of safety percentage
$
120,000
10%
27
28 Compute the degree of operating leverage
29 Sales
$ 1,200,000
30 Variable expenses
31 Contribution margin
32 Fixed expenses
33 Net operating income
900,000
300,000
$270,000
$
30,000
34
35 Degree of operating leverage
10.00
36
2. Change all of the numbers in the data area of your worksheet so that i
looks like this:
A
в
Chapter 5: Applying Excel
3
Data
4
Unit sales
60.000 units
5
Selling price per unit
$
10 per unit
6
Variable expenses per unit
6 per unit
7
Fixed expenses
$ 216.000
If your formulas are correct, you should get the correct answers to the following questions.
(a) What is the break-even in dollar sales?
wwwwm
Break-even in dollar sales
540,000
........
Transcribed Image Text:А1 fx Chapter 5: Applying Excel 1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 20,000 units $60 per unit $45 per unit $270,000 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit $60 per unit 45 per unit $15 per unit 16 17 CM ratio 25% 18 Variable expense ratio 75% 19 20 Compute the break-even 21 Break-even in unit sales 18,000 units 22 Break-even in dollar sales $1,080,000 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage $ 120,000 10% 27 28 Compute the degree of operating leverage 29 Sales $ 1,200,000 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income 900,000 300,000 $270,000 $ 30,000 34 35 Degree of operating leverage 10.00 36 2. Change all of the numbers in the data area of your worksheet so that i looks like this: A в Chapter 5: Applying Excel 3 Data 4 Unit sales 60.000 units 5 Selling price per unit $ 10 per unit 6 Variable expenses per unit 6 per unit 7 Fixed expenses $ 216.000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? wwwwm Break-even in dollar sales 540,000 ........
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