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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
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. 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 $20 per unit. The expected sales mix is two 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 $260,100? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? i Data Table Sales price per unit: (current monthly sales volume is 110,000 units) 25.00 Variable costs per unit: EA 7.60 Direct materials Direct labor $ 6.00 Variable manufacturing overhead 4.40 $ 3.00 Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 111,600 $ 167,400 256 GB 512 GB Total Sales price per unit 25 50 21 Variable cost per unit Less: 20 Contribution margin per unit 30 Sales mix Contribution margin Weighted average contribution margin per unit Choose from any list or enter any number in the input fields and then click Check
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