Jellico Inc.$$s projected operating income $($based on sales of $450,000$ units$)$ for the coming year is as follows: Sales $ $11,700,000\mathrm{.}00$ Total Variable Cost $ $8,190,000\mathrm{.}00$ Contribution Margin $ $3,510,000\mathrm{.}00$ Total Fixed Cost $ $2,254,200\mathrm{.}00$ Operating Income $ $1,255,800\mathrm{.}00$ Required: Compute: $($a$)$ variable cost per unit, $($b$)$ contribution margin per unit, $($c$)$ contribution margin ratio, $($d$)$ break$-$even point in units, and $($e$)$ break$-$even point in sales dollars. How many units must be sold to earn operating income of $$296,400?$ Compute the additional operating income that Jellico would earn if sales were $$50,000$ more than expected. For 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.$)$ Compute the new operating income if sales are $10\%$ higher than expected.

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Lets compute each of the required values a Variable Cost per Unit Variable Cost per Unit Total Varia... View the full answer