Symbol Manufacturing Inc

question 143

Essay

Symbol Manufacturing Inc.makes component parts for automobile navigation systems.For component A14 direct materials cost $47, and the assembly technicians are paid $42 per hour.A technician can produce two components per hour.Fixed manufacturing costs for A14 are $70,000 per unit based on current production of 12,000 units.Non-manufacturing costs are fixed at $120,000 per period.Each A14 component sells for $195.Required:
a.Prepare an income statement in gross margin format.
b.Calculate the dollar sales required to generate an operating profit of $1,500,000 and prepare an income statement in contribution margin format.
c.What actions could Symbol Manufacturing Inc.management take to lower the required number of units sold necessary to generate the desired operating profit?

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Definitions:

Text Messaging

The process of sending short electronic messages between mobile phones or other digital devices.

Triangulation

An approach in which more than one research method is used in an attempt to more fully understand an area of study.

Mixed Methods

An approach in which both quantitative and qualitative procedures are used.

Participatory Action Research (PAR)

Research that combines an action-oriented goal and the participation of research subjects.