Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drives - n - More Manufacturing manufactures 256GB SD cards (memory cards for moble phones, digital cameras, and other devices), Price and cost data for

image text in transcribed
image text in transcribed
image text in transcribed
Drives - n - More Manufacturing manufactures 256GB SD cards (memory cards for moble 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 ican to view the data.) Read the requitements. Requirement 1. What is the company's contribution margin per unit? Cantribution margin percentage? Total contribution margin? Begin by identifying the formula. The contribution margin per unit is What is the company's contribution margin percentage? Begin by identifying the formula. \{Round your answer to the nearest whole percent.) The contribution margin percentage is What is the company's total contribution margin? Begin by identifying the formula. The total contribution margin is Requirement 2. What would the company's monthly operating income be if the company sold 130,000 units? Use the following table to compute the operating income if 130,000 units are sold. Requirement 3. What would the company's monthly operating income be it 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 ratie to the nearest whole percent.) 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 130,000 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 proft of $259,700 ? 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 $23,500 per month. If these costs increase, how many units will the company have to sell each month to break oven? 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 7%, 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 eard (512GB in addition to 256GB). A 512GB SD card will sell for \$50 and have variable cost per unit of $28 per unit. The expected sales mix is four 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 $259,700 ? is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Wiry? Data table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering ISO Auditing A Comprehensive Guide To Learn ISO Auditing

Authors: Cybellium Ltd, Kris Hermans

1st Edition

B0CHL9PQFC, 979-8861285858

More Books

Students also viewed these Accounting questions