Data 

Unit sales 
20,000 
Selling price per unit 
$125 
Variable expenses per unit 
$45 
Fixed expenses 
$240,000 


Enter a formula into each of the cells marked with
a ? below 
Review Problem: CVP Relationships 



Compute the CM ratio and variable expense
ratio 
Selling price per unit 
? 
Variable expenses per unit 
? 
Contribution margin per unit 
? 


CM ratio 
? 
Variable expense ratio 
? 


Compute the breakeven 

Breakeven in unit sales 
? 
Breakeven in dollar sales 
? 


Compute the margin of safety 

Margin of safety in dollars 
? 
Margin of safety percentage 
? 


Compute the degree of operating leverage 
Sales 
? 
Variable expenses 
? 
Contribution margin 
? 
Fixed expenses 
? 
Net operating income 
? 


Degree of operating leverage 
? 