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	$ 12,850,000
Total variable cost	8,190,000
Contribution margin	$ 4,660,000
Total fixed cost	2,304,200
Operating income	$ 2,355,800

Required:

1(a). Compute variable cost per unit. Round your answer to the nearest cent. $per unit: 18.2

1(b). Compute contribution margin per unit. Round your answer to the nearest cent. $per unit: $10.36

1(c). Compute contribution margin ratio. For interim computations, carry amounts out to two decimal places. Round your final answer to four decimals places and enter as a percentage. %: 36.27%

1(d). Compute break-even point in units. If required, round your answer to nearest whole value. units: 22,413 units

1(e). Compute break-even point in sales dollars. If required, round your answer to nearest whole value. $: $6,352,909

2. How many units must be sold to earn operating income of $296,400? If required, round your answer to nearest whole value. units: ????

3. Compute the additional operating income that Jellico would earn 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 one decimal place.

6. Compute the new operating income if sales are 10% higher than expected. $