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  3. 1. determine the break-even point. 2. compute the

1. Determine the break-even point. 2. Compute the margin of satety and explain its significance....

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Accounting

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1. Determine the break-even point. 2. Compute the margin of satety 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. \begin{tabular}{|l|l|l|l|} \hline 12 & Selling price per unit \\ \hline 13 & Variable expenses per unit \\ \hline 14 & Contribution margin per unit \\ \hline 15 & & \\ \hline 16 & CM ratio \\ \hline 17 & Variable expense ratio \\ \hline 18 & \\ \hline 19 & 2. Compute the break-even point \\ \hline 20 & Break-even in unit sales \\ \hline 21 & Break-even in dollar sales \\ \hline 22 & \\ \hline 23 & 3. Compute the margin of safety \\ \hline 24 & Margin of safety in dollars \\ \hline 25 & Margin of safety percentage \\ \hline 26 & \\ \hline 27 & 4. Compute the degree of operating leverage \\ \hline 28 & Sales \\ \hline 29 & Variable expenses \\ \hline 30 & Contribution margin \\ \hline 31 & Fixed expenses \\ \hline 32 & Net operating income \\ \hline 33 & \\ \hline 34 & Degree of operating leverage \\ \hline 35 & \\ \hline \end{tabular}

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