Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales$11,700,000Total variable cost8,190,000Contribution margin$3,510,000Total fixed cost2,254,200Operating

Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows:

TotalSales$11,700,000Total variable cost8,190,000Contribution margin$3,510,000Total fixed cost2,254,200Operating income$1,255,800

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

3.Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.

$

4.For the projected level of sales, compute the margin of safety in units, and then in sales dollars.

Margin of safety in unitsunitsMargin of safety in sales dollars$

5.Compute the degree of operating leverage. Round your answer to one decimal place.

6.Compute the new operating income if sales are 10% higher than expected.

$

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

Core Concepts Of Accounting

Authors: Leslie Breitner, Robert Anthony

11th Edition

0133125947, 9780133125948

More Books

Students also viewed these Accounting questions

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago