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Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 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 $ 12,150,000 Total variable cost 7,654,500 Contribution margin $ 4,495,500 Total fixed cost 2,719,278 Operating income $ 1,776,222 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $ 17.01 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. $ 9.99 per unit 1(c). Compute contribution margin ratio. 37.00 % 1(d). Compute break-even point in units. 272,200 units 1(d). Compute break-even point in units. 272,200 units 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $357,642? 308,000 units 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. $ 18,500 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Margin of safety in units units 177,800 4,800,600 Margin of safety in sales dollars $ 5. Compute the degree of operating leverage. Round your answer to one decimal place. 2.53 x 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar. $ 2,225,772 x
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