Question

Ques SD card memory cards for mobile phones, Speedco Manufacturing manufactures 2 l ick pe con to www the data) Read the requirements tal cameras and other devices Price forar g 200.000 per month are as follows Requirement 1. What is the company's coronari per contribution margin percentage ou contraen man Begin by dealing the formula i Data Table Requirements 25.00 Sales price per unit current monthly sales volumes 110.000 ) Variable costs per unit: Direct materials Vrate manufacturing overhead Variable singo l e expenses Monthly fixed expenses 1. What is the company's contribution par unt? Couto mag pertontage? Total corto 2. What wound the company's monthly operating income be the com .000 unt? 3. What he company's monthly operating combatre company had s o 45000007 4. What is the braven point in units in der 5. How many and would the company have to analgeti r of of 20000 6. Management is currently in contract negotiations with the boro ther s fall doctor co n crete by 107 and food cou r se by $22.500 per month , how will the company have to sel each month to break even? 7. Return to the original data for question and the rest of me gestion was company's creoperating overage factor round to two decimas & Ware volume increases by by what percentage porting commercrease? 9. What is the company's current man y What man er salty as a percentage of sales 10. Say the company adds a seconds of socard 120 25000) A51205 SO card wisel for $50 and have variable cost per unit of $20 per un pecades two of the 25000 SD cards for every one of the 51208 SO Cards Given this same how many of achtypes and w e company red loser to reach is target monthly profit of $260.1007 ist w o herr a n previously beeded in Questions to achieve the same fargel pro Why? Done

Answer 1

As the image is not clear, the question is solved using the following data:

Sales price per unit = $25

Variable costs per unit :
Direct Materials = $7.60
Direct labor = $6
variable manufacturing overhead = $4.40
Variable selling and administrative expenses = $3

Monthly fixed expenses:
Fixed manufacturing overhead = $111,600
Fixed selling and administrative expenses = $167,400
*If the figures are different than actual then you can change the figures in the solution given below.

1. Contribution margin per unit = Selling price per unit - Variable costs per unit = $25 - ( $7.60 + $6 + $4.40 + $3 ) = $4 per unit.
Contribution margin percentage = ( Contribution margin per unit / Selling price per unit ) * 100 = ( $4 / $25 ) * 100 = 16%.
Total Contribution margin = Contribution margin per unit * Monthly sales volume = $4 per unit * 110,000 units = $440,000.

2. Monthly operating income if 140,000 units are sold = ( Contribution margin per unit * No. of units sold ) - Total monthly fixed expenses = ( $4 per unit * 140,000 units ) - ( $111,600 - $167,400 ) = $281,000.

3. Monthly operating income if sales equals $4,500,000 = ( Sales * Contribution margin percentage ) - Total monthly fixed expenses = ( $4,500,000 * 16% ) - ( $111,600 - $167,400 ) = $441,000.

4. Breakeven point in units = Total monthly Fixed costs / Contribution margin per unit = ( $111,600 - $167,400 ) / $4 per unit = 69,750 units.
Breakeven point in sales dollars = Breakeven point in units * Selling price per unit = 69,750 units * $25 = $1,743,750.