Break$-$Even Units, Contribution Margin Ratio, Multiple$-$Product Breakeven, Margin of Safety, Degree of Operating Leverage

Jellico Inc.$\text{'}$s projected operating income $($based on sales of $450,000$ units$)$ for the coming year is as follows:

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 $1$

$18\mathrm{.}85$

per unit

$1($b$).$ Compute contribution margin per unit. Enter your answer to the nearest cent.

$fill in the blank $2$

$10\mathrm{.}15$

per unit

$1($c$).$ Compute contribution margin ratio. Enter to one decimal point.

fill in the blank $3$

$35$

$\%$

$1($d$).$ Compute break$-$even point in units. Reminder: round$-$up to ensure partial units are completed.

fill in the blank $4$

$262,500$

units

$1($e$).$ Compute break$-$even point in sales dollars.

$fill in the blank $5$

$7,612,500$

$2.$ How many units must be sold to earn operating income of $$95,156?$

fill in the blank $6$

$9,375$

units

$3.$ Compute the additional operating income that Jellico would earn if sales were $$50,000$ more than expected.

$fill in the blank $7$

$15,000$

$4.$ For the projected level of sales, compute the margin of safety in units, and then in sales dollars.

Margin of safety in units fill in the blank $8$

$187,500$

units

Margin of safety in sales dollars $fill in the blank $9$

$5,887,500$

$5.$ Compute the degree of operating leverage. Round your answer to two decimal place.

fill in the blank $10$

$2\mathrm{.}4$

$6.$ Compute the new operating income if sales are $10\%$ higher than expected. Enter your answer to the nearest whole dollar.

$fill in the blank $11$

$1,642,125$