Chapter 5: Applying Excel Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses 40,000 units $50 per unit $35 per unit $570,000 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 $50 per unit 35 per unit $15 per unit CM ratio Variable expense ratio 30% 70% Compute the break-even Break-even in unit sales Break-even in dollar sales 38,000 units $1,900,000 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 $ 40,000 1,400,000 (1,360,000) 570,000 $ (790,000) Degree of operating leverage