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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: Sales Total $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(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $296,400? units
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