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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
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 $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 $1,255,800 Operating income Required: 1(a). Compute variable cost per unit. Round your answer to the nearest cent. per unit 1(b). Compute contribution margin per unit. Round your answer to the nearest cent. per unit $ 1(c). Compute contribution margin ratio. % 1(d). Compute break-even point in units. units: 1(c). Compute contribution margin ratio. % 1(d). Compute break-even point in units. units 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $296,400? 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. Margin of safety in sales dollars units 5. Compute the degree of operating leverage. Round your answer to two decimal places. 6. Compute the new operating income if sales are 10% higher than expected.
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