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Requirement 1 . What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. = Contribution margin
Requirement What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?
Begin by identifying the formula.
Contribution margin per unit
Part
The contribution margin per unit is
Part
What is the company's contribution margin percentage?
Begin by identifying the formula.
:
Contribution margin percentage
Part
Round your answer to the nearest whole percent.
The contribution margin percentage is
Part
What is the company's total contribution margin?
Begin by identifying the formula.
Contribution margin
Part
The total contribution margin is
Part
Requirement What would the company's monthly operating income be if the company sold comma units
Use the following table to compute the operating income if comma units are sold.
Less:
Part
Requirement What would the company's monthly operating income be if the company had sales of $ comma comma
Use the following table to compute the operating income with sales totaling $ comma comma Enter the contribution margin ratio to the nearest whole percent.
Less:
Part
Requirement What is the breakeven point in units? In sales dollars?
Begin by identifying the formula.
:
Breakeven sales in units
Part
Round the breakeven point in units up to the nearest whole unit.
The company's breakeven point is
units.
Part
What is the breakeven point in sales dollars?
Begin by identifying the formula.
:
Breakeven sales in dollars
Part
Round the breakeven point in sales dollars up to the nearest whole dollar.
The breakeven point in dollars is
Part
Requirement How many units would the company have to sell to earn a target monthly profit of $ comma
Begin by identifying the formula.
:
Target sales in units
Part
Round your answer up to the nearest whole unit.
In order to earn a monthly profit of $ the company must sell
units.
Part
Requirement Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by and fixed costs will increase by $ comma 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.
Part
Requirement Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factorround to two decimals
Begin by identifying the formula.
:
Operating leverage factor
Part
Round your answer to two decimal places.
The operating leverage factor is
Part
Requirement If sales volume increases by by what percentage will operating income increase? Round the percentage to one decimal place.
The operating income will increase by
Part
Requirement What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?
Begin by identifying the formula.
Margin of safety in dollars
Part
The current margin of safety in sales dollars is
Part
What is its margin of safety as a percentage of sales?
Begin by identifying the formula.
:
Margin of safety percentage
Part
Round the percentage to the nearest whole percent.
The margin of safety as a percentage of sales is
Part
Requirement Say the company adds a second size of SD cardGB in addition toGB A GB SD card will sell for $ and have variable cost per unit of $ per unit. The expected sales mix is two of the GB SD cards for every one of the GB 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 $ comma Is this volume higher or lower than previously neededin Question to achieve the same target profit? Why?
Begin by computing the weightedaverage contribution margin per unit. Round all amounts to the nearest cent, $XXX
GB
GB
Total
Less:
Weighted average contribution margin per unit
Part
Given this sales mix, how many of each type ofRequirements
What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?
What would the company's monthly operating income be if the company sold units?
What would the company's monthly operating income be if the company had sales of $
What is the breakeven point in units? In sales dollars?
How many units would the company have to sell to earn a target monthly profit of $
Management is currentl
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