BreakEven Units, Contribution Margin Ratio, MultipleProduct Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.s projected operating income based on sales of units for the coming year is as follows:
Required:
a Compute variable cost per unit. Enter your answer to the nearest cent.
$
ser unit
b Compute contribution margin per unit. Enter your answer to the nearest cent.
$
per unit
c Compute contribution margin ratio. Enter to one decimal point.
d Compute breakeven point in units. Reminder: roundup to ensure partial units are completed.
units
e Compute breakeven point in sales dollars.
$
How many units must be sold to earn operating income of $
units
Compute the additional operating income that Jellico would earn if sales were $ more than expected.
$
For the projected level of sales, compute the margin of safety in units, and then in sales dollars.
Margin of safety in units
units
Margin of safety in sales dollars
Compute the degree of operating leverage. Round your answer to two decimal place.
Compute the new operating income if sales are higher than expected. Enter your answer to the nearest whole dollar.
$
