III. Problem Solving 1. Jericho Inc.'s projected operating income (based on sales of 450,000 units for...
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III. Problem Solving 1. Jericho Inc.'s projected operating income (based on sales of 450,000 units for the coming year is as follows: 2. Required: 1. Compute the 3. Sales Total Variable Cost Contribution Margin Total Fixed Cost Operating Income a) Variable cost per unit b) Contribution margin per unit Contribution margin ratio c) d) Break-even point in units e) Break-even point in pesos How many units must be sold to earn operating income of P296,400? Compute the additional operating income that Jericho would earn if sales were P50,000 more than expected? 4. For the projected level of sales, compute the margin of safety in units and in pesos. 5. Compute the degree of operating leverage rounded to two decimal places. Total P 11,700,000 8,190,000 3,510,000 2,254,200 P 1,255,800 III. Problem Solving 1. Jericho Inc.'s projected operating income (based on sales of 450,000 units for the coming year is as follows: 2. Required: 1. Compute the 3. Sales Total Variable Cost Contribution Margin Total Fixed Cost Operating Income a) Variable cost per unit b) Contribution margin per unit Contribution margin ratio c) d) Break-even point in units e) Break-even point in pesos How many units must be sold to earn operating income of P296,400? Compute the additional operating income that Jericho would earn if sales were P50,000 more than expected? 4. For the projected level of sales, compute the margin of safety in units and in pesos. 5. Compute the degree of operating leverage rounded to two decimal places. Total P 11,700,000 8,190,000 3,510,000 2,254,200 P 1,255,800
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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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