Question: 15-39; 1-6 Please attach a detailed solution as I am completely lost with this problem. Exercise 15-39 Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin
Exercise 15-39 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 OBJ is as follows: Total $11,700,000 Sales Total variable cost 8,190,000 Contribution margin $ 3,510,000 2,254,200 $ 1,255,800 Total fixed cost 2 Operating income Required: Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution n ratio, (d) break-even point in units, and (e) break-even point in sales dollars. margi 2. How many units must be sold to earn o 3. Compute the additional operating income that Jellico would earn if sales were $50,000 2 perating income of $296,400 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. (Note: Round answer to two decimal places.) 6. Compute the new operating income if sales are 10 percent higher than expected. 6
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