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Break-even, 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 Sales $11,700,000 Total variable cost Contribution margin 8,190,000 $ 3,510,000 Total fixed cost 2,254,200 Operating income $ 1,255,800 Required: 1. 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. 2. How many units must be sold to earn operating income of $296,400? 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.

Break-even, 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 Sales $11,700,000 Total variable cost Contribution margin 8,190,000 $ 3,510,000 Total fixed cost 2,254,200 Operating income $ 1,255,800 Required: 1. 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. 2. How many units must be sold to earn operating income of $296,400? 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter19: Cost-Volume-Profit Analysis
Section: Chapter Questions
Problem 19.6BPR
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1,6,7 how do you do it in excel format

the proc ECTIVE 12 4 5 Exercise 7-50 Break-Even Units, Contribution Margin Ratio, Multiple-Product Break-even, 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 Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $ 3,510,000 Total fixed cost 2,254,200 Operating income $ 1,255,800 Required: 1. 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. 2. How many units must be sold to earn operating income of $296,400? 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. 5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.) 6. Compute the new operating income if sales are 10% higher than expected.
Transcribed Image Text:the proc ECTIVE 12 4 5 Exercise 7-50 Break-Even Units, Contribution Margin Ratio, Multiple-Product Break-even, 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 Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $ 3,510,000 Total fixed cost 2,254,200 Operating income $ 1,255,800 Required: 1. 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. 2. How many units must be sold to earn operating income of $296,400? 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected. 4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars. 5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.) 6. Compute the new operating income if sales are 10% higher than expected.
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