Answered step by step
Verified Expert Solution
Question
1 Approved Answer
High Tech Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range
High Tech 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: Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10%, and fixed costs will increase by $22,500 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 breakeven point is units. Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)? Begin by identifying the formula. 11= Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is Requirement 8 . If sales volume increases by 6%, by what percentage will operating income increase? (Round the percentage to one decimal place.) The operating income will increase by % 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. = Margin of safety in dollars The current margin of safety in sales dollars is What is its margin of safety as a percentage of sales? Begin by identifying the formula. = Margin of safety percentage (Round the percentage to the nearest whole percent.) The margin of safety as a percentage of sales is %
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