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    Chapter 5, Applying Excel Required 5

    Uploaded by

    Mohammad Yousuf Salim
    This document contains an Excel spreadsheet with accounting data and calculations for a company. It includes information on unit sales, selling price, variable expenses, fixed expenses, contribution margin, break-even point, margin of safety, and degree of operating leverage. Formulas are provided to calculate ratios like the CM ratio, variable expense ratio, and metrics like break-even sales and units.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd

    Chapter 5, Applying Excel Required 5

    Uploaded by

    Mohammad Yousuf Salim
    24 views1 page
    This document contains an Excel spreadsheet with accounting data and calculations for a company. It includes information on unit sales, selling price, variable expenses, fixed expenses, contribution margin, break-even point, margin of safety, and degree of operating leverage. Formulas are provided to calculate ratios like the CM ratio, variable expense ratio, and metrics like break-even sales and units.

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    © © All Rights Reserved

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    This document contains an Excel spreadsheet with accounting data and calculations for a company. It includes information on unit sales, selling price, variable expenses, fixed expenses, contribution margin, break-even point, margin of safety, and degree of operating leverage. Formulas are provided to calculate ratios like the CM ratio, variable expense ratio, and metrics like break-even sales and units.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    24 views1 page

    Chapter 5, Applying Excel Required 5

    Uploaded by

    Mohammad Yousuf Salim
    This document contains an Excel spreadsheet with accounting data and calculations for a company. It includes information on unit sales, selling price, variable expenses, fixed expenses, contribution margin, break-even point, margin of safety, and degree of operating leverage. Formulas are provided to calculate ratios like the CM ratio, variable expense ratio, and metrics like break-even sales and units.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 1

    682950757.

    xls
    Student Name: Mohammad Yousuf Salim
    Managerial Accounting
    Chapter 5: Applying Excel Sheet - Required-4

    Data
    Unit sales (Increased 15%) 11,500 Units
    Selling price per unit $120 Per Unit
    Variable expenses per unit $72 Per Unit
    Fixed expenses $420,000

    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 $120 Per Unit
    Variable expenses per unit 72 Per Unit
    Contribution margin per unit $48 Per Unit

    CM ratio 40%
    Variable expense ratio 60%

    Compute the break-even


    Break-even in unit sales 8,750 Units
    Break-even in dollar sales $1,050,000

    Compute the margin of safety


    Margin of safety in dollars $330,000
    Margin of safety percentage 24%

    Compute the degree of operating leverage


    Sales $ 1,380,000
    Variable expenses 828,000
    Contribution margin 552,000
    Fixed expenses $420,000
    Net operating income $132,000

    Degree of operating leverage 4.18

    Note:
    An increase of 120% on the current net operating income of $60,000 which result in net
    operating income of $132,000.

    Page 1

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