Accounting help Replace each with a number If you could sho

Accounting help. Replace each \"?\" with a number. If you could show how you got the answer I\'d really appreciate it!

Solution

Answer:
Selling Price per Unit = $60 per Unit
Variable Expenses per Unit = $45 per Unit
Contribution Margin per unit = Selling Price per Unit – Variable Expenses per Unit
Contribution Margin per unit = $60 - $45
Contribution Margin per unit = $15 per Unit

CM ratio = Contribution Margin / Sales * 100
CM ratio = 15 / 60 * 100
CM ratio = 25%

Variable Expense Ratio = Variable Expense / Sales * 100
Variable Expense Ratio = 45 / 60 * 100
Variable Expense Ratio = 75%

Break Even in Unit Sales = Fixed Expense / Contribution Margin per Unit
Break Even in Unit Sales = 240,000 / 15
Break Even in Unit Sales = 16,000 Units

Break Even in Dollar Sales = Fixed Expense / Contribution Margin Ratio
Break Even in Dollar Sales = 240,000 / 0.25
Break Even in Dollar Sales = $960,000

Margin of Safety in Dollars = Actual Sales – Break Even Sales
Actual Sales = 20,000 * $60
Actual Sales = $1,200,000

Margin of Safety in Dollars = $1,200,000 - $960,000
Margin of Safety in Dollars = $240,000

Margin of Safety percentage = (Actual Sales – Break Even Sales) / Actual Sales * 100
Margin of Safety percentage = ($1,200,000 - $960,000) / $1,200,000 * 100
Margin of Safety percentage = 240,000 / 1,200,000 * 100
Margin of Safety percentage = 20%

Sales

1,200,000

Variable Expenses

900,000

Contribution Margin

300,000

Fixed Expenses

240,000

Net Operating Income

60,000

Degree of Operating Leverage = Contribution Margin / Operating Income
Degree of Operating Leverage = 300,000 / 60,000
Degree of Operating Leverage = 5.0 times