Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#Book 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

image text in transcribedimage text in transcribed

#Book 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: Total Sales Total variable cost $9,450,000 6,142.500 Contribution margin $3,307,500 Total fixed cost 1,929,375 Operating income $1,378,125 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent per unit 1(c). Compute contribution margin ratio. Enter to one decimal point. 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. units 1(e). Compute break-even point in sales dollars. Cute Contrbution margin ratio. Enter to one decimal point. % 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. units 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $68,9067 units 3. Compute the additional operating income that Jellico would eam if sales were $50,000 more than expected. 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Margin of safety in units units Margin of safety in sales dollars 5. Compute the degree of operating leverage. Round your answer to two decimal place. 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting and Analysis Using Financial Accounting Information

Authors: Charles H. Gibson

13th edition

1285401603, 1133188796, 9781285401607, 978-1133188797

More Books

Students also viewed these Accounting questions

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago

Question

How many locations are currently under operation?

Answered: 1 week ago