Data Table 25.00 7.80 9 6.00 9 Sales price per unit: (current monthly sales volume is 140,000 units) .... $ Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead. $ Fixed selling and administrative expenses ........................... $ 9 2.60 2.10 9 292,000 447,200 Print Done Requirements - X 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 $4,500,000? 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 $269,500? 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 $24,000 per month. If these costs increase, how many units will the company have to sell each month to break even? 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)? 8. If sales volume increases by 8%, by what percentage will operating income increase? 9. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? 10. Say the company adds a second size of SD card (512GB in addition to 256GB). A 512GB SD card will sell for $50 and have variable cost per unit of $22 per unit. The expected sales mix is six of the 256GB SD cards for every one of the 512GB SD cards. Given this sales mix, how many of each type of SD card 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 Question 5) to achieve the same target profit? Why? Print Done Drives-n-More Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). 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.) Read the requirements. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. Sales price per unit - Variable cost per unit Contribution margin per unit The contribution margin per unit is $ 6.50 What is the company's contribution margin percentage? Begin by identifying the formula. i Contribution margin per unit Sales price per unit ) = Contribution margin percentage (Round your answer to the nearest whole percent.) The contribution margin percentage is 26 % What is the company's total contribution margin? Begin by identifying the formula. Sales revenue Variable expenses = Contribution margin The total contribution margin is $ Requirement 2. What would the company's monthly operating income be if the company sold 170,000 units? Use the following table to compute the operating income if 170,000 units are sold. Less: Requirement 3. What would the company's monthly operating income be if the company had sales of $4,500,000? Use the following table to compute the operating income with sales totaling $4,500,000. (Enter the contribution margin ratio to the nearest whole percent.) Less: Requirement 4. What is the breakeven point in units? In sales dollars? Begin by identifying the formula. = Breakeven sales in units (Round the breakeven point in units up to the nearest whole unit.) The company's breakeven point is units. What is the breakeven point in sales dollars? Begin by identifying the formula. = Breakeven sales in dollars (Round the breakeven point in sales dollars up to the nearest whole dollar.) The breakeven point in dollars is $ Requirement 5. How many units would the company have to sell to earn a target monthly profit of $269,500? Begin by identifying the formula. = Target sales in units (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $269,500, the company must sell units
