(SOLVED)- Jellico Inc s projected operating income based on sales of 450 000

Question Description:


Jellico Inc.’s projected operating income (based on sales of 450,000 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, and (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
5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)
6. Compute the new operating income if sales are 10 percent higher than expected.