Casio ClassPad II fx-CP400 Examples - Manual (Page 37)

Chapter 11: Financial Application 37
1109 Break-Even Point
Your company is producing items with a unit variable cost ([VCU]) of $50/
unit and fixed costs ([FC]) of $100,000. The items will be sold for a sales price
([PRC]) of $100/unit.
What is the break-even point sales amount ([SBE]) and sales quantity ([QBE])
required for a profit ([PRF]) of $400,000?
Before performing the calculation, change the “Profit Amount/Ratio” setting to
“Amount (PRF)” and the “Break-Even Value” to “Quantity”.
1. Tap [Calc(2)] - [Break-Even Point].
2. Input the values below into the applicable fields.
PRC = 100, VCU = 50, FC = 100000, PRF = 400000
3. Tap [QBE] to obtain the sales quantity.
4. Tap [SBE] to obtain the break-even point sales amount.
1110 Margin of Safety
What is the margin of safety ([MOS]) when the sales amount ([SAL]) is
$1,200,000 and the break-even sales amount ([SBE]) is $1,000,000?
1. Tap [Calc(2)] - [Margin of Safety].
2. Input 1200000 into the [SAL] field and 1000000 into the [SBE] field, and then
tap [MOS].
1111 Operating Leverage
What is the degree of operating leverage for a company with sales ([SAL])
of $1,200,000, variable costs ([VC]) of $600,000, and fixed costs ([FC]) of
$200,000?
1. Tap [Calc(2)] - [Operating Leverage].
2. Input 1200000 into the [SAL] field, 600000 into the [VC] field, and 200000
into the [FC] field, and then tap [DOL].
1112 Financial Leverage
Calculate the financial leverage ([DFL]) for a company that earns $400,000
before interest and taxes ([EBIT]), $80,000 of which is paid to bondholders
([INT]).
1. Tap [Calc(2)] - [Financial Leverage].
2. Input 400000 into the [EBIT] field and 80000 into the [INT] field, and then tap
[DFL].
1113 Combined Leverage
Calculate the Combined Leverage ([DCL]) for a company with variable costs
([VC]) of $6,000, fixed costs ([FC]) of $2,000, and sales ([SAL]) of $12,000, of
which $1,000 is paid to bondholders ([INT]).
1. Tap [Calc(2)] - [Combined Leverage].
2. Input 12000 into the [SAL] field, 6000 into the [VC] field, 2000 into the [FC]
field, and 1000 into the [INT] field, and then tap [DCL].
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