Please help with requirement 4 and any additional requirements that you can. Thank you.
FlashCo. 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, Unit contribution margin $ 3.40 Contribution margin s 442,000 288,900 Less: Fixed expenses S Operating income 153, 100 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 Contribution margin ratio Contribution margin $ 4,500,000 14 % $ 630.000 Less: Fixed expenses 288,900 Operating income $ 341,100 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 units. $ 25.00 Sales price per unit: (current monthly sales volume is 100,000 units) Variable costs per unit: Direct materials $ 8.00 Direct labor $ 8.00 $ 3.70 1.90 Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 121,800 167,100 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 $260,100? 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 $23,500 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 rest of the questions. What is the company's current operating leverage factor (round to two decimals)? 8. If sales volume increases by 3%, 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 $50 and have variable cost per unit of $27 per unit. The expected sales mix is nine 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 $260,100? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why
