ACC 2302 JUST THE LAST PART.

1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 2. Ex.4-39.Algo Total 3. Pr.4-40.Algo Sales $ 12,150,000 7,290,000 Total variable cost Contribution margin $ 4,860,000 Total fixed cost 2,865,240 Operating income $ 1,994,760 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $ 16.2 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. 10.8 per unit 1(c). Compute contribution margin ratio. 40 % 1(d). Compute break-even point in units. 265,300 units 1. Ex.4-38.Algo 1(e). Compute break-even point in sales dollars. $ 7,163,100 2. Ex.4-39.Algo 2. How many units must be sold to earn operating income of $374,760? 300,000 units 3. Pr.4-40.Algo 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. $ 20,000 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Margin of safety in units 184,700 units Margin of safety in sales dollars $ 4,986,900 5. Compute the degree of operating leverage. Round your answer to one decimal place. 2.4 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest cent. $ 2,480,750 x