SpeedCo. 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 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. vthly operating income be if the company had sales of $4,500,000 ? I income with sales totaling $4,500,000. (Enter the contribution margin ratio to the nearest SpeedCo. 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? 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 hach 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. 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. = Operating leverage factor (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 che 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. Requirement 10. Say the company adds a second size of SD card (512GB in addition to 256GB ). A 512GBSD card will sel 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 512GBSD cards. Given this sales mix, how mary of each type of SD card will the company need to sell to reach its target monthly proft of $260,100 ? is this volume higher or lower than previously needed (in Question 5 ) to achievo the same target profit? Why? Begin by computing the weighed-average contribution margin per unit. (Found all amounts to the nearest cont, $ ) Given this sales mix, how many of each type of $0 card wil the compary need to sel to teach its target monaly proft of $260,1007 (fRound now target sales in units up to the. next whole unit. Round units of the 25668 $D eards and 512CBSD cards to the nearest whole uni.) The new target sales in units is The company will need to sell inits of the 256GeSD cards and units of the 512Ge30 cards Data table
