Question
a. What is the companys contribution margin per unit? Contribution margin percentage? Total contribution margin? Total contribution margin? (6 mks) b. What would be the
a. What is the companys contribution margin per unit? Contribution margin percentage? Total contribution margin? Total contribution margin? (6 mks)
b. What would be the companys monthly operating income be if it is sold 130,000 units?
c. What would the companys monthly operating income be if it had sales of $4,000,000?
d. What is the breakeven point in units? In sales dollars? (2 mks)
e. How many units would the company have to sell to earn a target monthly profit of $260,100? (2 mks)
f. What is the companys current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? (4 mks)
g. Say the company adds a second line of flash drives (32 GB in addition to 16 GB). A unit of the 32 GB flash drives will sell for $50 and have variable costs per unit of $27 per unit. The expected sales mix is nine of the small flash drives (16 GB) for every one large flash drive (32 GB). Given this sales mix, how many of each type of flash drive will the company need to sell to reach its target monthly profit of $260,100? (6 mks)
1.0 General Manufacturing manufactures 16 GB flash drives. Price and cost data for a relevant range extending to 200,000 units per month are as followsStep by Step Solution
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