Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $640,000 and a contribution margin of 95% of revenues. Gordon feels like he's in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Gordon's contribution margin has shrunk to 65% of revenues. Gordon's monthly operating income, prior to these pressures, was $319, 500. Read the requirements. Requirement 1. To maintain this same level of profit, what sales volume (in sales revenue) must Gordon now achieve? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Fixed expenses + Operating income)/Contribution margin ratio = Target sales in dollars (Round your answer up to the nearest whole dollar.) Gordon must now achieve sales of $ to maintain the same level of profit.

Gordon Steels Parts will be required to sell $1,476,154 to maintain its profit level of $319,500

Explanation:

Fixed Expenses = $640,000

Contribution Margin = 95%

To compute Sales in Unit at various levels of Operating Income:

= (Fixed expenses + Operating income)/Contribution margin ratio = Target sales in dollars

= (640000 + 319500)/95%

= $1,010,000

As a result of Raw Materials Price increases, Margin has shrunk to 65%

This implies the new target sales to maintain same Operating Profit will be

= (640,000 + 319,500)/65%

=$1,476,154

answer; /// i believe that the correct answer is (covenant;

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.