Question
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
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: LOADING...(Click the icon to view the data.) Read the requirementsLOADING.... Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula. Sales price per unit Variable cost per unit = Contribution margin per unit The contribution margin per unit is $ 6.50 . What is the company's contribution margin percentage? Begin by identifying the formula. ( Contribution margin per unit / Sales price per unit ) = Contribution margin percentage (Round your answer to the nearest whole percent.) The contribution margin percentage is 26 %. What is the company's total contribution margin? Begin by identifying the formula. Sales revenue Variable expenses = Contribution margin The total contribution margin is $ 910,000 . Requirement 2. What would the company's monthly operating income be if the company sold 170 comma 000 units? Use the following table to compute the operating income if 170 comma 000 units are sold. Less:
Sales price per unit:
(current monthly sales volume is 140,000 units). . . .
$25.00
Variable costs per unit:
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$7.80
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$6.00
Variable manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2.60
Variable selling and administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . .
$2.10
Monthly fixed expenses:
Fixed manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$292,000
Fixed selling and administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . . .
$447,200
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