need 7-10

$ 20.00 Sales price per unit: (current monthly sales volume is 120,000 units) Variable costs per unit: Direct materials $ 7.40 Direct labor $ 5.00 $ 2.20 --- $ 1.40 Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses GA 191,400 276,600 $ 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)? 8. If sales volume increases by 8%, by what percentage will operating income increase? 9. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales? 10. Say the company adds a second size of SD card (512GB in addition to 256GB). A 512GB SD card will sell for $45 and have variable cost per unit of $20 per unit. The expected sales mix is three of the 256GB SD cards for every one of the 512GB 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 $260.000? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. Sales price per unit Variable cost per unit Contribution margin per unit $ ) Contribution margin percentage The contribution margin per unit is 4.00 What is the company's contribution margin percentage? Begin by identifying the formula. Contribution margin per unit Sales price per unit (Round your answer to the nearest whole percent.) The contribution margin percentage is What is the company's total contribution margin? Begin by identifying the formula. Sales revenue Variable expenses 20 % Contribution margin The total contribution margin is $ 480,000 Requirement 2. What would the company's monthly operating income be if the company sold 150,000 units? Use the following table to compute the operating income if 150,000 units are sold. Sales volume (units) 150,000 Unit contribution margin $ Contribution margin $ 600.000 Less: Fixed expenses 468,000 Operating income $ 132,000 4.00 Requirement 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 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.) Sales revenue $ 4,500,000 Contribution margin ratio 20 % Contribution margin $ 900,000 Less: Fixed expenses 468,000 Operating income $ 432,000 Requirement 4. What is the breakeven point in units? In sales dollars? Begin by identifying the formula. Fixed expenses Operating income + Contribution margin per unit - Breakaver sales in units (Round the breakeven point in units up to the nearest whole unit.) The company's breakeven point is 117,000 units. What is the breakeven point in sales dollars? Begin by identifying the formula. Fixed expenses Operating income ) + Contribution margin ratio Breakeven sales in dollars (Round the breakeven point in sales dollars up to the nearest whole dollar) The breakeven point in dollars is $ 2,340,000 Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,000? Begin by identifying the formula Fixed expenses Operating income ). Contribution margin per unit - Target sales in units (Round your answer up to the nearest whole unit.) Requirement 5. How many units would the company have to sell to eam a target monthly profit of $260,000? Begin by identifying the formula. Fixed expenses Operating income ) + Contribution margin per unit - Target sales in units (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $260,000, the company must sell 182,000 units Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fall, 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 140,143 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. Contribution margin Operating income Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is