JP Corporations projected data for 2017 are:

Sales: 203,000 units

Unit Price: $70

Total Variable Cost: ?

Total Contribution Margin: $6,090,000

Total Fixed Cost: $4,945,500

Operating Income: ?

REQUIRED:

1. Compute the Unit Variable Cost
2. Compute the CM per Unit
3. Compute the BEP in units
4. Calculate the CMR with four decimals
5. Compute BEP in sales revenue
6. Compute the Margin of Safety in dollars
7. Compute the Margin of Safety in dollars
8. Compute the Degree of Operating Leverage
9. If the projected advertising expense were increased by $250,000, it is expected that Sales revenue would increase by $1,000,000. How much would the Operating Income increases or decrease as a result of this action.