# Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 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.

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

#### Solutions

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Chapter 7, Problem 50E
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