Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage
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 | 7,533,000 |
Contribution margin | $ 4,617,000 |
Total fixed cost | 2,437,776 |
Operating income | $ 2,179,224 |
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 $311,904?
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.
$
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break Even Units, Contribution Margin Ratio, Multiple Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $9,000,000 Total variable cost 6,030,000 Contribution margin $ 2,970,000 Total fixed cost 1.898,820 Operating income $ 1,071,180 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. S per unit 1(b), Compute contribution margin per unit. Enter your answer to...
ACC 2302 1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 2. Ex.4-39.Algo Total 3. Pr.4-40.Algo Sales $ 12,150,000 7,290,000 Total variable cost Contribution margin $ 4,860,000 Total fixed cost 2,865,240 Operating income $ 1,994,760 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. per unit $ (b). Compute contribution...
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