Answered step by step
Verified Expert Solution
Link Copied!

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 units)

image text in transcribed
image text in transcribed
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 $ 13,050,000 Total variable cost 8,743,500 Contribution margin $ 4,306,500 Total fixed cost 2,440,350 Operating income $ 1,866,150 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. per unit 1(b). Compute contribution margin per unit. Enter 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. 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. per un 1(C). Compute contribution margin ratio 1(a). Compute break-even point in units. units 1(). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $315,8107 units 3. Compute the additional operating Income that Jellico would earn If sales were $50,000 more than expected, units 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 5. Compute the degree of operating leverage. Round your answer to two decimal place. 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Your Human Resources Department A Step By Step Guide

Authors: John H. McConnell

1st Edition

0814474675, 978-0814474679

More Books

Students also viewed these Accounting questions

Question

Distinguish between hearing and listening.

Answered: 1 week ago

Question

Use your voice effectively.

Answered: 1 week ago