E7-37A Comprehensive CVP analysis Learning Objectives 1, 2, 3, 4, 85) for relevant range extending to 200,000 units per month are as follows: Cost-Volume-Profit Analysis 427 Flash Manufacturing manufactures 16 GB flash drives Gump drives). Price and cost data Sales price per unit (current monthly sales volume is 140,000 units $ 25,00 Variable costs per unit: Direct materials Direct labor $ 7.30 $6.00 $ 2.60 $ 2.10 Variable manufacturing overhead. Wiable selling and administrative expenses Monthly fixed expenses Fixed manufacturing overhead Fred selling and administrative expenses...... $292,000 $447,200 Requirements 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 170,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,0007 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 $269,5007 6. Management is currently in contract negotiations with the labor union of the nego tiations fail, direct labor costs will increase by 10% and fixed costs will increase by $24.000 per month. If these costs increase, how many units will the company have to sell each month to breakeven? 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? If sales volume increases by 8%, by what percentage will operating income increme? 9. What is the company's current margin of safety in sales dollers? What is its margin of safety as a percentage of sales? 10. 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 cost per unit of S22 per unit. The expected sales mix is six of the small flash drives (16 GB) for every one large flash drive (32 GB) Given this sales max, how many of each type of fish drive will the company need to sell to reach its target monthly profit of $269,500? Is this volume higher or lower than previously needed in Questions to achieve the same target profit? Why? CHAPTER