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: Line Item Description Total Sales $ 13,050,000 Total variable cost 8,482,500 Contribution margin $ 4,567,500 Total fixed cost 2,664,375 Operating income $ 1,903,125 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. fill in the blank 1 of 1$ 18.85 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. fill in the blank 1 of 1$ 10.15 per unit 1(c). Compute contribution margin ratio. Enter to one decimal point. fill in the blank 1 of 1 35 % 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. fill in the blank 1 of 1 262,500 units 1(e). Compute break-even point in sales dollars. fill in the blank 1 of 1$ 7,612,500 2. How many units must be sold to earn operating income of $95,156? Reminder: round-up to ensure partial units are completed. fill in the blank 1 of 1 2,673,750 units 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. fill in the blank 1 of 1$ 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Line Item Description Answer Margin of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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: Line Item Description Total Sales $ 13,050,000 Total variable cost 8,482,500 Contribution margin $ 4,567,500 Total fixed cost 2,664,375 Operating income $ 1,903,125 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. fill in the blank 1 of 1$ 18.85 per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent. fill in the blank 1 of 1$ 10.15 per unit 1(c). Compute contribution margin ratio. Enter to one decimal point. fill in the blank 1 of 1 35 % 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. fill in the blank 1 of 1 262,500 units 1(e). Compute break-even point in sales dollars. fill in the blank 1 of 1$ 7,612,500 2. How many units must be sold to earn operating income of $95,156? Reminder: round-up to ensure partial units are completed. fill in the blank 1 of 1 2,673,750 units 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. fill in the blank 1 of 1$ 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. Line Item Description Answer Margin of safety in units fill in the blank 8 units Margin of safety in sales dollars $fill in the blank 9 5. Compute the degree of operating leverage. Round your answer to two decimal place. fill in the blank 1 of 1 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar. fill in the blank 1 of 1$

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