FlashCo. 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: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 Requirement 1. What is the company's contribution margin per unit? The contribution margin per unit is $3. What is the company's contribution margin ratio? The contribution margin ratio is 15%. What is the company's total contribution margin? The total contribution margin is $. Requirement 4. What is the breakeven point in units? units. The company's breakeven point is What is the breakeven point in sales dollars? The breakeven point in dollars is $. Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100? In order to earn a monthly profit of $260,100, the company must sell 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)? The operating leverage factor is. Data table Requirement 8. If sales volume increases by 8%, by what percentage will operating income increase? (Round the percentage to one decimal place.) The operating income will increase by %. Sales price per unit (current monthly sales volume in 140,000 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 Print Done $ $ 20.00 5.80 8.00 2.10 1.10 152,200 208,700 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 $23,000 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 units. - X
FlashCo. 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: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 Requirement 1. What is the company's contribution margin per unit? The contribution margin per unit is $3. What is the company's contribution margin ratio? The contribution margin ratio is 15%. What is the company's total contribution margin? The total contribution margin is $. Requirement 4. What is the breakeven point in units? units. The company's breakeven point is What is the breakeven point in sales dollars? The breakeven point in dollars is $. Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100? In order to earn a monthly profit of $260,100, the company must sell 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)? The operating leverage factor is. Data table Requirement 8. If sales volume increases by 8%, by what percentage will operating income increase? (Round the percentage to one decimal place.) The operating income will increase by %. Sales price per unit (current monthly sales volume in 140,000 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 Print Done $ $ 20.00 5.80 8.00 2.10 1.10 152,200 208,700 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 $23,000 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 units. - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:FlashCo. 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:
(Click the icon to view the data.)
Requirements Ignore requirements 2, 3, 9 & 10
Requirement 1. What is the company's contribution margin per unit?
The contribution margin per unit is $3.
What is the company's contribution margin ratio?
The contribution margin ratio is 15%.
What is the company's total contribution margin?
The total contribution margin is $.
Requirement 4. What is the breakeven point in units?
The company's breakeven point is
units.
What is the breakeven point in sales dollars?
The breakeven point in dollars is $
Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100?
In order to earn a monthly profit of $260,100, the company must sell units.
C
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)?
The operating leverage factor is.
Data table
Requirement 8. If sales volume increases by 8%, by what percentage will operating income increase? (Round the percentage to one decimal place.)
The operating income will increase by%.
Sales price per unit
(current monthly sales volume in 140,000 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
Print
..........
Done
$
$
20.00
5.80
8.00
2.10
1.10
152.200
208,700
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 $23,000 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 units.
- X
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