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Requirement 7 (operating leverage factor) and 8 (operating income increase) below. QuickCo. Manufactures 1 GB flash drives (jump drives). Pries and cost data for a
Requirement 7 (operating leverage factor) and 8 (operating income increase) below.
QuickCo. Manufactures 1 GB flash drives (jump drives). Pries and cost data for a relevant range extending to 200,000 units per month are as follows: Requirements Ignore requirements 2, 3, 9 & 10 What is the company's contribution margin per unit? What is the company's contribution margin ratio? What is the company's total contribution margin? What is the breakeven point in units? What is the breakeven point in sales dollars? How many units would the company have to sell to earn a target monthly profit of $259,700? 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 $23,533 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.) 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)? If sales volume increases by 7%, by what percentage will operating income increase? (Round the percentage to one decimal place.)Step by Step Solution
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