Question
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 10,800,000 Total variable cost
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 10,800,000 Total variable cost 6,048,000 Contribution margin $ 4,752,000 Total fixed cost 2,536,512 Operating income $ 2,215,488 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. $ 2. How many units must be sold to earn operating income of $325,248? 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 units units Margin 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. Enter your answer to the nearest whole dollar. $
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