*Only need help on Requirement 6*
25.00 .......... Sales price per unit: (current monthly sales.valume is. 120,000 units)..... $ Variable costs per unit: Direct materials. ..... .............. Direct labor...... Variable manufacturing overhead.......... ..Variable selling and administrative expenses......... Monthly fixed expenses: Fixed manufacturing overhead. Fixed selling and administrative expenses.......... .......... $ 6.60 7.00 2.40 1.90 241,900 327,900 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 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 9%, and fixed costs will increase by $24,400 per month. If these costs increase, how many units will the company have to sell each month to break even? Storage 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: (Click the icon to view the data.) Read the requirements. 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 The contribution margin per unit is $ 7.10. What is the company's contribution margin percentage? Begin by identifying the formula. Contribution margin per unit / Sales price per unit ) = Contribution margin percentage (Round your answer to the nearest whole percent.) The contribution marain percentage is 28 % What is the company's total contribution margin? Begin by identifying the formula. Sales revenue Variable expenses - Contribution margin The total contribution margin is $ 852,000 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 $ 7.10 Contribution margin $ 1,065,000 Less: Fixed expenses 569,800 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 28 Contribution margin ratio Contribution margin $ 1,260,000 569,800 Less: Fixed expenses Operating income $ 690,200 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 - Breakeven sales in units (Round the breakeven point in units up to the nearest whole unit.) The company's breakeven point is 80,254 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 ( 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 $ 2,035,000 Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 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 $260,400, the company must sell 116,930 units. The breakeven point in dollars is $ 2,035,000 Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 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 $260,400, the company must sell 116,930 units. Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 9%, and fixed costs will increase by $24,400 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
