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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: !!!
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 Required Bata Table - x Requir perceni Begin Sales price per unit (currently monthly sales volume is 140,000 units). $ 20.00 er --- Variable costs per unit: The col Direct materials 5.80 Direct labour 8.00 What is Variable manufacturing overhead 2.10 Begin Variable selling and administrative expenses 1.10 ution hin Monthly fixed expenses: Fixed manufacturing overhead S 152,200 Choose questio Fixed selling and administrative expenses 208.700 ve Drics and cact data for a rolauantan 200 non unite na a follow 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 Input TICA questom
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