acct homework part 1 and 2 attached
Question Help SpeedCo. Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 i Data Table - X Requirement 1. What is the company's contribution margin per unit? The contribution margin per unit is $]. Sales price per unit What is the company's contribution margin ratio? (current monthly sales volume in 130,000 units) . .. . . . . . . . . . 20.00 The contribution margin ratio is%. Variable costs per unit: Direct materials 5.20 What is the company's total contribution margin? Direct labor 7.00 The total contribution margin is $]. Variable manufacturing overhead 2.00 Variable selling and administrative expenses 1.80 Requirement 4. What is the breakeven point in units? Monthly fixed expenses: The company's breakeven point is | | units. Fixed manufacturing overhead . . . . . . . . . 102,300 What is the breakeven point in sales dollars? Fixed selling and administrative expenses . . . . . . . . . . . . . . 187,800 The breakeven point in dollars is $]. Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260, 100? Print Done In order to earn a monthly profit of $260, 100, the company must sell | |units. Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10%, and fixed costs will increase by $22,500 per month. If these costs increase, how many units will the company have to sell each month to break even? (Round your answer up to the nearest whole number.) The new breakeven point is |] units. Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)? Enter your answer in each of the answer boxes. ?Question Help SpeedCo. Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 i Requirements X Requirement 1. What is the company's contribution margin per unit? The contribution margin per unit is $. 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? What is the company's contribution margin ratio? 3. What would the company's monthly operating income be if the company had sales of $4,000,000? The contribution margin ratio is]%. 4. What is the breakeven 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? What is the company's total contribution margin? 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10%, and fixed costs will increase by $22,500 per month. If these costs increase, how many units will the company have The total contribution margin is $]. to sell each month to break even? . Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)? Requirement 4. What is the breakeven point in units? 8. If sales volume increases by 7%, by what percentage will operating income increase? The company's breakeven point is |] units. 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 SpeedCo. adds a second line of flash drives (2 GB rather than 1 GB). A package of the 2 GB flash drives will sell for $45 What is the breakeven point in sales dollars? and have variable cost per unit of $28 per unit. The expected sales mix is six of the smaller flash drives (1 GB) for every one The breakeven point in dollars is $. Print Done Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260, 100? In order to earn a monthly profit of $260,100, the company must sell | units. Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10%, and fixed costs will increase by $22,500 per month. If these costs increase, how many units will the company have to sell each month to break even? (Round your answer up to the nearest whole number.) The new breakeven point is | | units. Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)? Enter your answer in each of the answer boxes
