Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales price per unit: Variable costs per unit: Direct materials Direct labor. Variable manufacturing overhead Variable selling and administrative expenses $5.60$6.00 54.40 5300 Monthly fixed

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sales price per unit: Variable costs per unit: Direct materials Direct labor. Variable manufacturing overhead Variable selling and administrative expenses $5.60$6.00 54.40 5300 Monthly fixed expenses: Fixed manufacturing overhead $11,600 Fixed selling and administrative expenses $167400 Storage 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. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. The contribution margin per unit is What is the company's contribution margin percentage? Begin by identifying the formula ]= Contribution margin per unit gin percentage? (.+1)=1 Contribution margin (Round your answer to the nearest whole percent) The contribution margin percentage is % What is the company's total contribution margin? Begin by identifying the formula: Storage Manufactuning 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 The total contribution margin is Requirement 2. What would the company's monthly operating income be if the company sold 140,000 units? Use the following table to compute the operating income if 140,000 units are sold. Requirement 3. What would the company's monthly operating income be if the company had sales of $4,500,000 ? Use the following table to compute the operating income with sales totaling $4,500,000 henter the contribution margin ratio to the nearest whole percent.) Storage 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. Requirement 4. What is the breakeven point in units? In sales dollars? Begin by identifying the formula. ( + ) +3 Breakeven sales (Round the breakeven point in units up to the nearest whole unit) The company's breakeven point is units. What is the breakeven point in sales dollars? Begin by identifying the formula. ( + ) + Round the breakeven point in sales dollars up to the nearest whole dollar) The breakeven point in dollars is Requirement 5. How many units would the company have to sell to eam a target monthly profit of $260,100 ? Begin by identifying the formula. (Round your answer up to the nearest whole unit.) In order to earn a monthly profit of $260,100, 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 $22,500 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 (Round your answer to two decimal places) The operating leverage factor is Requirement 8 . If sales volume increases by 6%, by what percentage will operating income increase? (Round the percentage to one decimal place.) The operating income will increase by Requirement 9. 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. The current margin of safety in sales dollars is What is its margin of safety as a percentage of sales? Begin by identifying the formula. (Round the percentage to the nearest whole percent.) The margin of safety as a percentage of sales is % Requirement 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 $20 per unit. The expected sales mix is two 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 $260,100 ? Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? Begin by computing the weighted-average contribution margin per unit. (Round all amounts to the nearest cent, $XX.) 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 $260,100? (Round new target sales in units up to the next whole unit. Round units of the 256GB SD cards and 512GB SD cards to the nearest whole unit.) 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 S260,100? (Round new target sales in units up to the next whole unit Round units of the 256GBSD cards and 512 GB SD cards to the nearest whole unit) The new target sales in units is The company will need to sell units of the 256GB SD cards units of the 512GB SD cards. Is this volume higher or lower than previously needed (in Question 5) to achieve the same target profit? Why? The target sales is before because now the company is selling a product with unit contribution margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Management Accounting

Authors: Tom Groot, Frank Selto

1st Edition

0273730185, 978-0273730187

More Books

Students also viewed these Accounting questions