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Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Required: 1. Compute: (a) variable cost per
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Required: 1. 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. 2. How many units must be sold to earn operating income of $296,400 ? 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. 5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.) 6. Compute the new operating income if sales are 10% higher than expected. Organize your variables in the following manner: 4. Worksheet: Follow this format. Be sure to link variables to the worksheet. Formulas should be included in the links. A link begins in the destination cell with " = " and then you pick up the variable from the variables page. If necessary build a formula and add more variables. When complete hit enter. 5. Check figures. Breakeven in units for sales of $11,700,000,289,000 units. Operating income if sales increased by 10%,$1,608,800
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