Given the following information complete a CVP analysis for JPL, Inc.:
Unit sales - 11,200 units
Selling price per unit - $75 per unit
Variable expenses per unit - $45 per unit
Fixed expenses - $210,000
Use the data to answer the following.
1. Compute the CM ratio and variable ratio.
Selling price per unit
Variable expenses per unit
Contribution margin per unit
CM ratio
Variable expenses ratio
2. Compute the break-even point
Break-even in unit sales
Break-even in dollar sales
3. Compute the margin of safety
Margin of safety in dollars
Margin of safety percentage
4. Compute the degree of operating leverage
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income