Question
In: Accounting
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!
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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