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. + )4 = Target sales in units (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $259,700, the company must sell 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 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. 1 Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is Requirement 8. If sales volume increases by 7%, by what percentage will operating income increase? (Round the percentage to one decimal place.) The operating income will increase by %. i Data Table $ Sales price per unit: (current monthly sales volume is 100,000 units) ... $ 25.00 Variable costs per unit: Direct materials 7.50 Direct labor $ 5.00 Variable manufacturing overhead $ 3.30 Variable selling and administrative expenses $ 2.20 Monthly fixed expenses: Fixed manufacturing overhead $ 241,600 Fixed selling and administrative expenses $ 357,600 Print Done Requirements 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 130,000 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 $259,700? 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 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? Print Done