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QuickCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras and other devices). Price and cost data for a relevant range extending
QuickCo. 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. ( Fixed expenses Operating income ) = Contribution margin per unit = Breakeven sales in units + (Round the breakeven point in units up to the nearest whole unit.) 0 Data Table The company's breakeven point is 85,600 units. What is the breakeven point in sales dollars? S 25.00 Begin by identifying the formula ( Fixed expenses + Operating income ) Contribution margin ratio = Breakeven sales in dollars S 7.50 (Round the breakeven point in sales dollars up to the nearest whole dollar.) S 5.00 Sales price per unit: (current monthly sales volume is 100,000 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 S 3.30 S 2.20 The breakeven point in dollars is $ 2,140,000 Requirement 5. How many units would the company have to sell to earn a target monthly profit of $259,700? Begin by identifying the formula. ( Fixed expenses Operating income ): Contribution margin per unit = Target sales in units S 241.600 S 357,600 + (Round your answer up to the nearest whole unit.) Print Done In order to earn a monthly profit of $259,700, the company must sell 122.700 units. 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 $23,500 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 95,800 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
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