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SpeedCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant rang extending
SpeedCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant rang extending to 200,000 units per month are as follows: (Click the icon to view the data.) Read the requirements. Margin of safety in dollars Sales = Margin of safety percentage (Round the percentage to the nearest whole percent.) 4. The margin of safety as a percentage of sales is 37 % 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, $X.XX.) 256 GB 512 GB Total $ 50.00 Sales price per unit Less: Variable cost per unit Contribution margin per unit 25.00 $ 21.00 20.00 30.00 eal $ 4.00 $ Sales mix 2 1 3 Contribution margin $ 8.00 $ 30.00 $ 38.00 ale 12.67 Weighted average contribution margin per 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 $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.) The company will need to sell units of the 256GB SD cards The new target sales in units is and units of the 512GB SD cards. Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check Answer i Data Table - X $ 25.00 $ 7.60 $ 6.00 Sales price per unit: (current monthly sales volume is 110,000 units) Variable costs per unit: Direct materials Direct labor.. Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses $ 4.40 $ 3.00 $ 111,600 $ 167,400 Print Done
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