Please solve for 8,9, & 10.
Drives -n-More Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Pric (Click the icon to view the data.) $ 25.00 Read the requirements. Sales price per unit: (current monthly sales volume is 100,000 units) Variable costs per unit: Direct materials $ 7.50 $ 5.00 Begin by identifying the formula. $ 3.30 Operating income Fixed expenses Contribution margin per unit = Target sales in units $ 2.20 Direct labor Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $259,700, the company must sell 122,700 units. $ 241,600 $ 357,600 Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase company have to sell each month to break even? (Round your answer up to the nearest whole number.) The new breakeven point is 95,800 units. Requirements Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage Begin by identifying the formula. Contribution margin Operating income - Operating leverage factor (Round your answer to two decimal places.) 8. If sales volume increases by 7%, 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 $28 per unit. The expected sales mix is four 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 $259,700? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? The operating leverage factor is 6.94 Requirement 8. If sales volume increases by 7%, by what percentage will operating income increase? (Round the percentage to one decim The operating income will increase by %. Drives -n-More Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Pric (Click the icon to view the data.) $ 25.00 Read the requirements. Sales price per unit: (current monthly sales volume is 100,000 units) Variable costs per unit: Direct materials $ 7.50 $ 5.00 Begin by identifying the formula. $ 3.30 Operating income Fixed expenses Contribution margin per unit = Target sales in units $ 2.20 Direct labor Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $259,700, the company must sell 122,700 units. $ 241,600 $ 357,600 Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase company have to sell each month to break even? (Round your answer up to the nearest whole number.) The new breakeven point is 95,800 units. Requirements Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage Begin by identifying the formula. Contribution margin Operating income - Operating leverage factor (Round your answer to two decimal places.) 8. If sales volume increases by 7%, 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 $28 per unit. The expected sales mix is four 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 $259,700? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? The operating leverage factor is 6.94 Requirement 8. If sales volume increases by 7%, by what percentage will operating income increase? (Round the percentage to one decim The operating income will increase by %
