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
Bainbridge, Inc. has projected sales and production in units for the second quarter of the coming...
Bainbridge, Inc. has projected sales and production in units for
the second quarter of the coming year as follows:
August
September
October
Production
95,000
85,000
70,000
Sales
85,000
75,000
95,000
Cash-related production costs are budgeted at $12 per unit
produced. Of these production costs, 35% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $125,000 per
month and increase 2% each month thereafter. The accounts...
ABC Inc. has projected sales and production in units for the second quarter of the coming...
ABC Inc. has projected sales and production in units for the
second quarter of the coming year as follows:
April
May
June
sales.......
50,000
40,000
60,000
production.....
60,000
50,000
50,000
cash related production costs are budgeted at $5 per unit
produced. Of these production costs, 40% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $100,000 per
month. The accounts payable balance on March 31...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows:
April
May
June
Sales
45,000
35,000
55,000
Production
55,000
45,000
45,000
Cash-related production costs are budgeted at $7 per unit
produced. Of these production costs, 25% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $70,000 per
month. The accounts payable balance on March 31 totals...
Tilson Company has projected sales and production in units for the second quarter of the coming...
Tilson Company has projected sales and production in units for
the second quarter of the coming year as follows:
April
May
June
Sales
55,000
45,000
65,000
Production
65,000
55,000
55,000
Cash-related production costs are budgeted at $7 per unit produced.
Of these production costs, 40% are paid in the month in which they
are incurred and the balance in the following month. Selling and
administrative expenses will amount to $110,000 per month. The
accounts payable balance on March...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows:
April May June
Sales 50,000 40,000
60,000
Production 60,000 50,000
50,000
Cash-related production costs are budgeted at $8 per unit
produced. Of these production costs, 35% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $80,000 per
month. The accounts payable balance on March 31...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows:
April
May
June
Sales
49,000
39,000
59,000
Production
59,000
49,000
49,000
Cash-related production costs are budgeted at $6 per unit
produced. Of these production costs, 40% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $60,000 per
month. The accounts payable balance on March 31 totals...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows:
April
May
June
Sales
53,000
43,000
63,000
Production
63,000
53,000
53,000
Cash-related production costs are budgeted at $5 per unit
produced. Of these production costs, 40% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $50,000 per
month. The accounts payable balance on March 31 totals...
Clay Corporation has projected sales and production in units for the second quarter of the coming...
Clay Corporation has projected sales and production in units for
the second quarter of the coming year as follows:
April
May
June
Sales
55,000
47,000
65,000
Production
62,500
52,500
52,500
Cash-related production costs are budgeted at $5.5 per unit
produced. Of these production costs, 30% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to $150,000 per
month. The accounts payable balance on March 31 totals...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows: April May
June Sales 61,000 51,000 71,000 Production 71,000 61,000 61,000
Cash-related production costs are budgeted at $6 per unit produced.
Of these production costs, 50% are paid in the month in which they
are incurred and the balance in the following month. Selling and
administrative expenses will amount to $60,000 per month. The
accounts payable balance on March 31 totals...
Tilson Corporation has projected sales and production in units for the second quarter of the coming...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows: April May
June Sales 60,000 50,000 70,000 Production 70,000 60,000 60,000
Cash-related production costs are budgeted at $8 per unit produced.
Of these production costs, 45% are paid in the month in which they
are incurred and the balance in the following month. Selling and
administrative expenses will amount to $80,000 per month. The
accounts payable balance on March 31 totals...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
ADVERTISEMENT