GigaCo manufactures 1GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: EF! (Click the icon to view the data) Requirements Data Tante - ution margin? Requirement 1. What is th Begin by identifying the for Sales price per unit Sales price pe per unit (currently monthly sales volume is 140,000 units) $ 20.00 The contribution margin pe Variable costs per unit: Direct materials 5.80 What is the company's con Begin by identifying the for Direct labour 8.00 Variable manufacturing overhead Contribution margir 2.10 ( in percentage Variable selling and administrative expenses 1.10 The contribution margin pel Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 152,200 Choose from any list or er 208,700 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 170,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,000,000? 4. What is the break-even point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,100? 6. Management is currently in contract negotiations with the labour union. If the negotiations fail, direct labour costs will increase by 10%, and fixed costs will increase by $23,000 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 remaining questions. What is the company's current operating leverage factor, rounded to two decimals? 8. If sales volume increases by 8%, by what percentage will operating income increase? 9. What is the firm's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? 10. Say GigaCo adds a second line of flash drive (2GB rather than 1GB). A 2GB flash drive will sell for $45 and have variable cost per unit of $30 per unit. The expected sales mix is three small flash drives for each large flash drive. Given this sales mix, how many of each type of flash drive will GigaCo need to sell to reach its target monthly profit of $260,100? Is this volume higher or lower than previously needed in Requirement 5) to achieve the same target profit? Why? Print Done (Click the icon to view the data.) Requirements Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula for the company's contribution margin per unit. Sales price per unit Variable cost per unit Contribution margin per unit ! The contribution margin per unit is $3 What is the company's contribution margin percentage? Begin by identifying the formula. ( Contribution margin per unit Sales price per unit ) x 100% = Contribution margin percentage The contribution margin percentage is 15%. Choose from any list or enter any number in the input fields and then continue to the next question. GigaCo manufactures 1GB flash drives (jump drives) Price and cost data for a relevant range extending to 200,000 units per month are as follows: B(Click the icon to view the data.) Requirements TTU COTTUTDOUOTTarget percentage is 1970. What is the company's total contribution margin? Begin by identifying the formula. Sales revenue Variable expenses Contribution margin The total contribution margin is 5600000 Requirement 2. What would the company's monthly operating income be if it sold 170,000 units? Use the following table to compute the operating income if 170,000 units are sold Choose from any list or enter any number in the input fields and then continue to the next question. GigaCo manufactures 1GB flash drives (jump drives). 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.) Requirements meyuME WE WOULU corpurry Tortun peruur Om Vonov URN Use the following table to compute the operating income if 170,000 units are sold. j Operating income Requirement 3. What would the company's monthly operating income be if it had sales of $4,000,000? Use the following table to compute the operating income with sales totalling $4,000,000 (Enter applicable rates as a decimal.) Choose from any list or enter any number in the input fields and then continue to the next question. Resursnient 3. Wat te company's mortly brains increte fit hat Geo L COLOSSO Dette felong to the creating income with sales calling S (Fates applicatie des ostecenas aralingiry Fisirsnies, Waste sistem court snit in tescolas en functieomdatotode tre seker grein units SESSE Meter entertera GigaCo manufactures 1GB flash drives (jump drives). 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.) Requirements Requirement 4. What is the break-even point in units? In sales dollars? Begin by identifying the formula to calculate the break-even point in units. Break-even sales in units The company's break-even point is units. What is the break-even point in sales dollars? Begin by identifying the formula ( Break-even sales in dollars The break-even point in dollars is S Choose from any list or enter any number in the input fields and then continue to the next question Requirements Break-even sales in units The company's break-even point is units. What is the break-even point in sales dollars? Begin by identifying the formula Break-even sales in dollars The break-even point in dollars is $| Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100? Begin by identifying the formula Target sales in units In order to earn a monthly profit of S260, 100, the company must sell units. Choose from any list or enter any number in the input fields and then continue to the next question, Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100? Begin by identifying the formula, Target sales in units In order to earn a monthly profit of $260,100, the company must sell units. Requirement 6. Management is currently in contract negotiations with the labour union. If the negotiations fail, direct labour costs will increase by 10%, and fixed costs will increase by $23,000 per month. If these costs increase, how many units will the company have to sell each month to break even? (Round your answer up to the nearest whole number.) The new break-even point is units. Requirement 7. Return to the original data for this question and the remaining questions. What is the company's current operating leverage factor (round to two decimals)? Ronin hu identifiring the formula Choose from any list or enter any number in the input fields and then continue to the next question Requiremens Requirement 7. Return to the original data for this question and the remaining questions. What is the company's current operating leverage factor (round to two decimals)? Begin by identifying the formula. Operating leverage factor The operating leverage factor is (Round your answer to two decimal places.) Requirement 8. If sales volume increases by 8%, by what percentage will operating income increase? (Round the percentage to one decimal place.) Using the operating leverage factor method, the operating income will increase by %. Requirement 9. What is the firm's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? Begin by identifying the formula to calculate the firm's current margin of safety in sales dollars. Choose from any list or enter any number in the input fields and then continue to the next question, Using me operaung leverage factor meinoa, the operating income will increase by % Requirement 9. What is the firm's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? Begin by identifying the formula to calculate the firm's current margin of safety in sales dollars. Margin of safety in dollars The current margin of safety is $0 What is its margin of safety as a percentage of sales? Begin by identifying the formula x 100% = Margin of safety as a percentage The margin of safety as a percentage of sales is %. (Round the percentage to the nearest whole percent.) Choose from any list or enter any number in the input fields and then continue to the next question, Requirements x 100% = Margin of safety as a percentage The margin of safety as a percentage of sales is % (Round the percentage to the nearest whole percent.) Requirement 10. Say GigaCo adds a second line of flash drives (2GB rather than 1GB). The 2GB flash drive will sell for $45 and have variable cost per unit of $30 per unit. The expected sales mix is three small flash drives for each large flash drive. Given this sales mix, how many of each type of flash drive will GigaCo need to sell to reach its target monthly profit of $260,100? Is this volume higher or lower than previously needed (in Requirement 5) to achieve the same target profit? Why? Begin by computing the weighted average contribution margin per unit. First identify the formula labels, and then complete the calculations step by step 1GB 2GB Total Less Choose from any list or enter any number in the input fields and then continue to the next question 2 ? GigaCo manufactures 1GB flash drives (jump drives) Price and cost data for a relevant range extending to 200,000 units per month are as follows: E: (Click the icon to view the data.) Requirements 1GB 2GB Total Less Weighted average contribution margin per unit Given this sales mix, how many of each type of flash drive will GigaCo need to sell to reach its target monthly profit of $260,100? The new target sales in units is Choose from any list or enter any number in the input fields and then continue to the next question GigaCo manufactures 1GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: B (Click the icon to view the data.) Requirements Weighted average contribution margin per unit Given this sales mix, how many of each type of flash drive will GigaCo need to sell to reach its target monthly profit of $260,100? The new target sales in units is GigaCo will need to sell units of the smaller drives and units of the larger units Is this volume higher or lower than previously needed (in Requirement 5) to achieve the same target profit? Why? The target sales is V before because now the company is selling a product with unit contribution margin Choose from any list or enter any number in the input fields and then continue to the next question 2