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Hello, there are some parts of this question that I cannot figure out. Any help is much appreciated! Thanks in advance! Break-Even Units, Contribution Margin
Hello, there are some parts of this question that I cannot figure out. Any help is much appreciated! Thanks in advance!
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 $ 9,900,000 Total variable cost 6,039,000 Contribution margin $ 3,861,000 2,114,112 Total fixed cost Operating income $ 1,746,888 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $ 13.42 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. $ 8.58 per unit 1(c). Compute contribution margin ratio. 39 % 1(d). Compute break-even point in units. 246,400 units 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $271,128? 278,000 units 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. $ 19,500 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Margin of safety in units 203,600 units Margin of safety in sales dollars 5. Compute the degree of operating leverage. Round your answer to one decimal place. 1 2.2Step by Step Solution
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