Question

FlashCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data fc relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Read the requirements. 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 $ What is the company's contribution margin percentage? Begin by identifying the formula

Answer 1

Req 1: conui baron maugin pc = - - Sales Puice Pury - Vouiable Colt PU $25 - (666+4++$2:4 +41-9) $25 - $179 contribution margin Pucentage Contibution maigin p. V Selling Price Pl. 41 : 284% Totau contribution margin o f sales - vauable cost f Sohbet * (120.000x $25) - ( 120.000 -4149 - $3.000.000 - 2,1481000 -$852,000 Reqa $3,750,000 - $2,685,000 Sales (150.000x800) len: Vauable cost (150.000* $149) contecibution margin lets: fixed CooL Operating income - $ 1,065,000 - 1 569,800 $ 497 495,200 Rega Sales $ 4,500,000 contribution maiginuatio - 28.4% contribution maigin - $ 11248,000 leki fixed cost $ 569,800 operating income - 8708,200

Rega Bueals e Bueak even sales in unterired manufactuais cost + fixed selling core Contribution maigér poi 6841,900 + 327.900 $4.1 = $569,800 - 80,524 units Reqs Pauger Sales in uneti = fired 204 + -beiget Puotit Contribution margin P.U - 0569,800+ $ 260,400 = $830,200 116,930 unit increase in labor - C$ 7x9n) - 0-6 Nero contribution margin - 971 - 06 - 86.5 Inceare in timed cost - $24.000 Nero total fixed cost - 569,800 + d 24.000 = $ 543,800 Bueak even sales inurile = 543,800, 91,354 units $6.5 Reqs Current Operating everage - - fixed cost puolir 569,800 1:15 & 495, doo

Regg Sale in by 6% $3,975,000 Couetuibution maigin - $ 1,128,900 ters: Rived cose + $ 569,800 Ner income - 559,100 increase in income - $559,100-$495,200 $ 63,900 pucentage - $63900 x100 $491,200 2 12.90% Rega maging Safety dollow Margin of a culenr Sale - Bueak thensalu = $ 3.750.000 - $ 2,013, 100 2 $ 1,736,900 Margin of safety percentage = MOS indollar 10 Sales 1,736,900 x100 43-70% $ 3.975,000

Reg to Mix - 4:1 contribution maigin mix - 4x87.1+ (x 822 $28.4+2a $504 Parget peafit - Pored cour - farger contribution - $260,400 569,800 880,200 Sabe o unib - 16,472 $ 880,200 $50.4 Sales / 256GB - 16,472 x 4 = 65,889 512 GB - 16,472

2160B Slap Polat $823,600 461,216 Sales $ 1,647,295 variable cost $1,149,413 Contibution malgin - $464,812 Pereteet $362,884 0830,196 $5697860 and Company needs to sell 65,889 units of ar6GB units 16,442 units of S120B caldı The targer sales is less before because now the companys Selling a product with Higher unit Contributwu maigin.