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High Tech Manufacturing manufactures 2 5 6 GB SD cards ( memory cards for mobile phones, digital cameras, and other devices ) . Price and
High Tech Manufacturing manufactures GB SD cards memory cards for mobile phones, digital cameras, and other devices Price and cost data for a relevant range extending to units
per month are as follows:
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Requirement What is the company's contribution margin per unit? Contribution margin perc
Begin by identifying the formula.
What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?
What would the company's monthly operating income be if the company sold comma units
What would the company's monthly operating income be if the company had sales of $ comma comma
What is the breakeven point in units? In sales dollars?
How many units would the company have to sell to earn a target monthly profit of $ comma
Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by and fixed costs will increase by $ comma per month. If these costs increase, how many units will the company have to sell each month to break even?
Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factorround to two decimals
If sales volume increases by by what percentage will operating income increase?
What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?
Say the company adds a second size of SD cardGB in addition toGB A GB SD card will sell for $ and have variable cost per unit of $ per unit. The expected sales mix is six of the GB SD cards for every one of the GB 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 $ comma Is this volume higher or lower than previously neededin Question to achieve the same target profit? Why?
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