1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 160,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,000,000? 4. What is the break-even point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,100? 6. Management is currently in contract negotiations with the labour union. If the negotiations fail, direct labour costs will ince by 10%, and fixed costs will increase by $22,500 per month If these costs increase, how many units will the company ha sell each month to break even? 7. Return to the original data for this question and the remaining questions. What is the company's current operating leverag factor rounded to two decimals? 8. If sales volume increases by 7%, by what percentage will operating income increase? 9. What is the firm's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? 10. Say Drives-n-More adds a second line of flash drive (2GB rather than 1GB). A 2GB flash drive will sell for $45 and have variable cost per unit of $28 per unit. The expected sales mix is six small flash drives for each large flash drive. Given this s mix how many of each type of flash drive will Drives-n-More need to sell to reach its target monthly profit of $260.1007 is the volume higher or lower than previously needed (in Requirement 5) to achieve the same target profit? Why? Sales price per unit (currently monthly sales volume is 130,000 units) Variable costs per unit: : Direct materials $ 20.00 6.20 Direct labour 7.00 2.00 1.80 Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 102,300 187,800