The Chapter 5 Form worksheet is to be used to create your ow

The Chapter 5 Form worksheet is to be used to create your own worksheet version of the example in the text on pages 212-214 100.00 points 2. Change all of the numbers in the data area of your worksheet so that it looks like this: Chapter 5: Applying Excel 3 Data 4 Unit sales S Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 80,000 units $60 per unit $24 per unit $2.304.000 If your formulas are comect, you should get the correct answers to the following questions (a) What is the break-even in dollar sales? (b) What is the margin of safety peroentage? (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) of 3. Using the degree of operating leverage and without changing anything in your worksheet, caloulate the percentage change in net operating income if unit sales increase by 20%

Solution

Working:

a. Net operating income = $$1,152,000

b. Increase in net operating income = 100% ((1,152,000-576,000)/576,000)

5.

Working:

d.

Working:

(a)	Break-even in sales dollars		3840000
(b)	Margin of safety %		20%
(c)	Degree of operating leverage		5.00