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Jellico Inc. s projected operating income ( based on sales of 4 5 0 , 0 0 0 units ) for the coming year is

Jellico Inc.s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Sales $ 11,700,000.00 Total Variable Cost $ 8,190,000.00 Contribution Margin $ 3,510,000.00 Total Fixed Cost $ 2,254,200.00 Operating Income $ 1,255,800.00 Required: Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars. How many units must be sold to earn operating income of $296,400? Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Compute the degree of operating leverage. (Note: Round answer to two decimal places.) Compute the new operating income if sales are 10% higher than expected.

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