Enter a formula into each of the cells marked with the question mark and compute the CM ratio and variable expense ratio.

Question

Please answer the question with the question mark next to it based on the following information:

Enter a formula into each of the cells marked with the question mark

compute the CM ratio and variable expense ratio.

selling price per unit ??

variable expense per unit ??

contribution margin per unit ??

CM ratio ??

variable expense ratio ??

COMPUTE THE BREAK - EVEN

break-even in unit sales ??

break even in dollar sales ??

COMPUTE THE MARGIN OF SAFTEY

margin of safety in dollars. ??

margin of safety percentage ??

COMPUTE THE DEGREE OF OPERATION LEVERAGE

sales ??

variable expense ??

contribution expense ??

fixed expense ??

net operating income ??

degree of operation leverage ??

Answer 1

Contribution margin = sales price - variance cost

contribution margin ratio = contribution margin / sales

breakeven in units = fixed costs / contribution margin per unit

breakeven in dollars = fixed costs / contribution margin ratio

margin of safety in units = budgeted units - breakeven units

margin of safety in dollars = budgeted sales - breakeven sales

degree of operating leverage = change in ebit/change sales