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Requirements 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
Requirements
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 ld 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 proft of $
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 $ per month. If these costs increase, how many units will the company have to sell
each month to break even?
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 by what percentage will operating income increase?
What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?
Say the company adds a second size of SD card GB in addition to G A GB SD card will sell for $ and have
variable cost per unit of $ per unit. The expected sales mix is six of the GB SD cards for every one of the
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
Cards. Given this sales mix, how many of each type of SD card wil the company need to sell to reach its target monthly profit of $ is this volume higher or lower than previously needed in Question to achieve the same target profit? Why?
Data table
Sales price per unit: current monthly sales volume is units $
Variable costs per unit
Direct materials
Direct labor.
and administrative expenses
Fixed manufacturing overhead
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