Answered step by step
Verified Expert Solution
Question
1 Approved Answer
FlashCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range
FlashCo. 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. Data table Requirement 1. What is the company's Sales price per unit: (current monthly sales volume is 120,000 units) Variable costs per unit: $ 20.00 Begin by identifying the formula. Direct materials - Sales price per unit The contribution margin per unit is What is the company's contribution mar Begin by identifying the formula. Contribution margin per unit (Round your answer to the nearest who The contribution margin percentage is 7.40 Direct labor.... Variable manufacturing overhead $ 5.00 $ 2.20 Variable selling and administrative expenses $ 1.40 Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 191,400 $ 276,600 Get more help Print Done Clear all Check answer Requirement 9. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? Begin by identifying the formula. Sales Breakeven sales in dollars Margin of safety in dollars The current margin of safety in sales dollars is 10. Say the company adds a second size of SD card (512GB in addition to 256GB). A 512GB SD card will sell for $45 and have variable cost per unit of $20 per unit. The expected sales mix is three 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 $260,000? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started