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Storage Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows:

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Storage Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: E: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 170,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $269,500? 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 $24,000 per month. If these costs increase, how many units will the company have to sell each month to break even? 7. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage 2.60 2.10 Variable manufacturing overhead Variable selling and administrative expenses Monthly fixed expenses: Fixed manufacturing overhead .......................$ 292,000 447,200 Fixed selling and administrative expenses ............. 25.00 Sales price per unit (current monthly sales volume in 140,000 units) .............. $ Variable costs per unit: Direct materials ............................... Direct labor .................................. 7.30 6.00

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