Scribd
Upload
66 views

Chapter 5, Applying Excel Required 3

This document appears to be an Excel worksheet for a student's managerial accounting assignment calculating various metrics related to cost-volume-profit analysis such as contribution margin ratio, break-even point, margin of safety, and degree of operating leverage for a company with $120 selling price per unit, $72 variable cost per unit, and $420,000 in fixed costs. Key metrics calculated include a 40% contribution margin ratio, break-even points of 8,750 units and $1,050,000 in sales, 13% margin of safety of $150,000, and a degree of operating leverage of 8.

Uploaded by

Mohammad Yousuf Salim
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
66 views

Chapter 5, Applying Excel Required 3

This document appears to be an Excel worksheet for a student's managerial accounting assignment calculating various metrics related to cost-volume-profit analysis such as contribution margin ratio, break-even point, margin of safety, and degree of operating leverage for a company with $120 selling price per unit, $72 variable cost per unit, and $420,000 in fixed costs. Key metrics calculated include a 40% contribution margin ratio, break-even points of 8,750 units and $1,050,000 in sales, 13% margin of safety of $150,000, and a degree of operating leverage of 8.

Uploaded by

Mohammad Yousuf Salim
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 1

682950756.

xls
Student Name: Mohammad Yousuf Salim
Managerial Accounting
Chapter 5: Applying Excel Sheet - Required-2

Data
Unit sales 10,000 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 $150,000
Margin of safety percentage 13%

Compute the degree of operating leverage


Sales $ 1,200,000
Variable expenses 720,000
Contribution margin 480,000
Fixed expenses $420,000
Net operating income $60,000

Degree of operating leverage 8.00

Note:
The degree of operating leverage is 8 and the margin of safety is 13%.

Page 1

You might also like