Exercise 4-39) Break-Even Units, Contribution Margin Ratio, Multiple-Product reakeven, 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: Total $11,700,000 S 3,510,000 S 1,255,800 Sales Total variable cost 8,190,000 Contribution margin Total fixed cost 2,254,200 Operating income /22 Required: 1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution mar- 3. gin ratio, (d) break-even point in units, and (e) break-even point in sales dollars. How many units must be sold to earn operating income of $296,400? Co mpute the additional operating income that Jellico would earn if sales were $50,000 more than expected. or the projected level of sales, compute the margin of safety in units, and then in sales dollars. Compute the degree of operating leverage. (Note: Round answer to two decimal places.) pute the new operating income if sales are 10% higher than expected. PROBLEMS tian Margin Ratio. Margin of Safety