JP Corporations projected data for 2017 are: Sales: 203,000 units Unit Price: $70...
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Accounting
JP Corporations projected data for 2017 are:
Sales: 203,000 units
Unit Price: $70
Total Variable Cost: ?
Total Contribution Margin: $6,090,000
Total Fixed Cost: $4,945,500
Operating Income: ?
REQUIRED:
Compute the Unit Variable Cost
Compute the CM per Unit
Compute the BEP in units
Calculate the CMR with four decimals
Compute BEP in sales revenue
Compute the Margin of Safety in dollars
Compute the Margin of Safety in dollars
Compute the Degree of Operating Leverage
If the projected advertising expense were increased by $250,000, it is expected that Sales revenue would increase by $1,000,000. How much would the Operating Income increases or decrease as a result of this action.
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