Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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. 152 X per unit 1(b). Compute contribution margin per unit. Round your answer to the nearest cent. 19.5 X 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started