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Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Lew Jellico Inc.'s projected operating income (based on sales of 450,000 units)
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Lew Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 10,800,000 Total variable cost 6,588,000 Contribution margin $ 4,212,000 Total fixed cost 2,441,088 Operating Income $ 1,770,912 Required: (a). Compute variable cost per unit Enter your answer to the nearest cont 5. compute the degree of operating leverage. Round your answer to two decimal place. 2.38 6. Compute the new operating Income If sales are 10% higher than expected. Enter your answer to the nearest whole dollar 219,211,200 x Feedback Check My Work 1. a. Divide variable cost by units. b. Divide contribution margin by units. c. Divide contribution margin by sales. d. Divide fixed cost by unit contribution margin. e. Divide fixed cost by contribution margin ratio. 3. Multiply expected sales by contribution margin ratio. 4. Compute the difference between expected sales units and break-even sales units. Compute the difference between expected sales an
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