Requirement 1 What is the companys contribution margin per u

Requirement 1. What is the? company\'s contribution margin per? unit? Contribution margin? percentage? Total contribution? margin?

Begin by identifying the formula.

–

=

Contribution margin per unit

The contribution margin per unit is

?$nothing.

What is the? company\'s contribution margin? percentage?

Begin by identifying the formula.

(

/

) =

Contribution margin percentage

?(Round your answer to the nearest whole? percent.)

The contribution margin percentage is

nothing?%.

What is the? company\'s total contribution? margin?

Begin by identifying the formula.

–

=

Contribution margin

The total contribution margin is

?$nothing.

Requirement 2. What would the? company\'s monthly operating income be if the company sold

150 comma 000150,000

?units?

Use the following table to compute the operating income if

150 comma 000150,000

units are sold.

$7.10

Less:

Requirement 3. What would the? company\'s monthly operating income be if the company had sales of

$ 4 comma 500 comma 000$4,500,000??

Use the following table to compute the operating income with sales totaling

$ 4 comma 500 comma 000$4,500,000.

?(Enter the contribution margin ratio to the nearest whole? percent.)

%

Less:

Requirement 4. What is the breakeven point in? units? In sales? dollars?

Begin by identifying the formula.

(

+

) /

=

Breakeven sales in units

?(Round the breakeven point in units up to the nearest whole? unit.)

The? company\'s breakeven point is

nothing

units.

What is the breakeven point in sales? dollars?

Begin by identifying the formula.

(

+

) /

=

Breakeven sales in dollars

?(Round the breakeven point in sales dollars up to the nearest whole? dollar.)

The breakeven point in dollars is

?$nothing.

Requirement 5. How many units would the company have to sell to earn a target monthly profit of

$ 260 comma 400$260,400??

Begin by identifying the formula.

(

+

) /

=

Target sales in units

?(Round your answer up to the nearest whole? unit.)

In order to earn a monthly profit of

$ 260 comma 400$260,400?,

the company must sell

nothing

units.

Requirement 6. Management is currently in contract negotiations with the labor union. If the negotiations? fail, direct labor costs will increase by

99?%,

and fixed costs will increase by

$ 24 comma 400$24,400

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

nothing

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.

/

=

Operating leverage factor

?(Round your answer to two decimal? places.)

The operating leverage factor is

nothing.

Requirement 8. If sales volume increases by

66?%,

by what percentage will operating income? increase? ?(Round the percentage to one decimal? place.)

The operating income will increase by

nothing?%.

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.

-

=

Margin of safety in dollars

The current margin of safety is

?$nothing.

What is its margin of safety as a percentage of? sales?

Begin by identifying the formula.

/

=

Margin of safety percentage

?(Round the percentage to the nearest whole? percent.)

The margin of safety as a percentage of sales is

nothing?%.

Requirement 10. Say the company adds a second line of flash drives? (32 GB in addition to 16? GB). A unit of the 32 GB flash drives will sell for

$ 50$50

and have variable cost per unit of

$ 28$28

per unit. The expected sales mix is

fourfour

of the small flash drives? (16 GB) for every one large flash drive? (32 GB). Given this sales? mix, how many of each type of flash drive will the company need to sell to reach its target monthly profit of

$ 260 comma 400$260,400??

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.)

16 GB

32 GB

Total

Less:

Weighted average contribution margin per unit

Given this sales? mix, how many of each type of flash drive will the company need to sell to reach its target monthly profit of

$ 260 comma 400$260,400??

?(Round new target sales in units up to the next whole unit. Round units of the smaller drives and larger units to the nearest whole? unit.)

The new target sales in units is

nothing.

The company will need to sell

nothing

units of the smaller drives and

nothing

units of the larger units.

Is this volume higher or lower than previously needed? (in Question? 5) to achieve the same target? profit? Why?

The target sales is

?

higher than

lower than

the same as

before because now the company is selling a product with

?

a much higher

a much lower

the same

unit contribution margin.

–

=

Contribution margin per unit

Solution

As per policy first four requirements will be answered

The contribution margin per unit is $7.10

The contribution margin percentage is 28.40%

The total contribution margin is $852000

Requirement 2

Requirement 3

Requirement 4

The? company\'s breakeven point is 80254 units

The breakeven point in dollars is $2006338

Sales price per unit	-	variable cost per unit	=	contribution margin Per unit
25	-	17.90	=	7.10