Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is...
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Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,250,000 Total variable cost 7,312,500 Contribution margin $3,937,500 2,296,875 Operating income $1,640,625 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 Total fixed cost 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $82,031? units 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. Margin of safety in units units Margin of safety in sales dollars 5. Compute the degree of operating leverage. Round your answer to two decimal place. 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar. Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,250,000 Total variable cost 7,312,500 Contribution margin $3,937,500 2,296,875 Operating income $1,640,625 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 Total fixed cost 1(e). Compute break-even point in sales dollars. 2. How many units must be sold to earn operating income of $82,031? units 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. Margin of safety in units units Margin of safety in sales dollars 5. Compute the degree of operating leverage. Round your answer to two decimal place. 6. Compute the new operating income if sales are 10% higher than expected. Enter your answer to the nearest whole dollar.
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a To compute variable cost per unit Total Variable Cost Sales unit 7312500450000 1625 per unit b To ... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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