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1. Determine the break-even point 2 Compute the margin of safety 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 FILE ? - CVD Analysis - Excel FORMULAS DATA HOME INSERT PAGE LAYOUT REVIEW VIEW Sign In X Calibri - 112 M Paste BIU 06 - AN Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font B12 V 8 D A c 1. Given the following information complete a CVP analysis 2 for IPL, Inc. 3 4 Unit sales 11,200 units 5 Selling price per unit $75 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $210,000 11,200 units $75 per unit $45 per unit $210,000 Iper unit per unit per unit 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 Use the data to answer the following. 10 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 15 Variable expenses per unit 14 Contribution margin per unit 15 16 CM ratio 17 Variable expense ratio 18 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales 22 23 3. Compute the margin of safety 24 Martin of safety in dollars Sheet units 100% Show Me READY Attempt(s) 10/10

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