Jellico Inc.'s projected operating income (based on sales of 180,000 units) for the coming year is...

Jellico Inc.'s projected operating income (based on sales of 180,000 units) for the coming year is as follows:

Sales	11,700,000
Total Variable Cost	8,190,000
Contribution Margin	3,510,000
Total Fixed Cost	2,254,200
Operating Income	1,255,800

1. Compute: (a). variable cost per unit (b) contribution margin per unit (c) contribution margin ratio (d) break-even point in units (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. Round your answer to two decimal places.

6. Compute the new operating income if sales are 10% higher than expected.

If possible please type a response, some handwriting is hard to read. Thank you!

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Expert Solution

ekkarill92 answered 1 year ago

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