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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. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? lotal contribution margin? Begin by identifying the formula. Sales price per unit The contribution margin per unit is What is the company's contribution margin percentage? Begin by identifying the formula. Variable cost per unit Variable cost per unit = Contribution margin per unit +Sales price per unit )= Contribution margin percentage (Round your answer to the nearest whole percent.) The contribution margin percentage is 18% What is the company's total contribution margin? Begin by identifying the formula. Sales revenue The total contribution margin is Variable expenses Contribution margin Requirement 2. What would the company's monthly operating income be if the company sold 140,000 units? Use the following table to compute the operating income if 140,000 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: Data table Sales price per unit: (current monthly sales volume is 110,000 units) $ 25.00 Variable costs per unit: Direct materials $ 7.60 Direct labor... $ 6.00 Variable manufacturing overhead $ 4.40 Variable selling and administrative expenses $ 3.00 Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 111,600 167,400 Print Done Time Remaining: 01:36:06 Next
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