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: Sales Total variable cost Total $ 8,100,000 5,265,000 Total fixed cost Contribution margin $ 2,835,000 1,653,750 $ 1,181,250 Operating income 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. Enter to one decimal point. % 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Sales
Total variable cost
Total
$ 8,100,000
5,265,000
Total fixed cost
Contribution margin
$ 2,835,000
1,653,750
$ 1,181,250
Operating income
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. Enter to one decimal point.
%
1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed.
units
Transcribed Image Text: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: Sales Total variable cost Total $ 8,100,000 5,265,000 Total fixed cost Contribution margin $ 2,835,000 1,653,750 $ 1,181,250 Operating income 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. Enter to one decimal point. % 1(d). Compute break-even point in units. Reminder: round-up to ensure partial units are completed. units
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