3 Due to erratic sales of its sole product-a high-capacity battery for laptop computers --PEM, Inc. has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (33,300 units per unit) Variable expenses Contribution margin Filed expenses Net operating loss 366.00 159.60 106,400 110.400 1 (12.000 Required: 1. Compute the company's CM ratio and its break even point in unit sales and dollar sales 2 The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $81,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? 3 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget, will double unit sales of the sales manager is right, what will be the revised net operating income foss) 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,400? 5. Refer to the original data By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month a Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,300 units next month Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are (Show data on a per unit and percentage basis, as well as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg1 Rog 2 Reg 3 Reg 4 Red SA Rog 58 Reg 5C Compute the company's CM ratio and its break even point in unit sales and dollar sales. (Do not round Intermediate calculations, Round cm ratio to the nearest whole percentage (1.0.0.234 should be entered as "23").) CM ratio Break-even point in unit sales Ch 5 Erics 3 10 w $39.000 in the monthly advertising budget will double unitates. If the sales manager is right what will be the revised net operating income fosse 4 Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 50 50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,400 5. Refer to the original data By automating, the company could reduce variable expenses by $3 per unit. However, fored expenses would increase by $55.000 each month a Compute the new CM ratio and the new break even point in unit sales and dollar sales b. Assume that the company expects to sell 20.300 units next month Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are: (Show data on a per unit and percentage basis, as well as in total, for each alternative) Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.3001? print Complete this question by entering your answers in the tabs below. Reg 58 Red 50 Reg 2 Rog4 Rey SA Reg 2 Rog1 Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round Intermediate calculations, Round "CM ration to the nearest whole percentage (0.234 should be entered as "23")) CM ratio Break-even point in unit sales Break even point in dollar sales ROS Req2 B Contribution at et rating los Required: 1 Compute the company's CM ratio and its break even point in unt sales and dollar sales 2. The president believes that a 56.600 increase in the monthly advertising budget combined with an intensified effort by the sales staff will result in an $81.000 increase in monthly sales. If the president is right what will be the increase (decrease) in the company's 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget will double unit sales if the sales manager is right what will be the revised net operating income foss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0 50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4 400 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fored expenses would increase by $55.000 each month a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales b. Assume that the company expects to sell 20.300 units next month Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are (Show data on a per unit and percentage basis, as well as in total, for each alternative) Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Req Regi Reg2 Reg 4 Rec SA Reg Reg SC The president believes that a $6,600 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $81,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating Income? (Do not round intermediate calculations) by 3 Contribution or 118,460 5 (12.000 perating loss Required: 1 Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2 The president believes that a $6.600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an 581000 increase in monthly sales of the president is right, what will be the increase (decrease) in the company's 3 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price.combined with an increase of $39.000 in the monthly advertising budget, will double unit sates. If the sales manager is right, what will be the revised net operating income foss? 4. Refer to the original data The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,400? 5 Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, forced expenses would increase by $55,000 each month a Compute the new CM ratio and the new break even point in unit sales and dollar sales b. Assume that the company expects to sell 20,300 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are (Show data on a per unit and percentage basis, as well as in total, for each alternative) c. Woulel you recommend that the company automate its operations (Assuming that the company expects to sell 20.300)? Complete this question by entering your answers in the tabs below. Beg 2 Reg 3 Rea 1 Reg 4 Reg SA Reg SB Reg SC Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising budget, will double unit sales. If the sales manager in tight, what will be the revived not operating Income (1) closes should be entered as a negative value) Ravnd not operating income (s) ( Req2 Reg 4 > 106,400 Contribution margin Fixed expenses Net operating loss 5 (12.000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staft will result in an $81,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget, wil double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,400? 5. Refer to the original data By automating the company could reduce variable expenses by $3 per unit. However, foved expenses would increase by $55.000 each month a Compute the new CM ratio and the new break even point in unit sales and dollar sales b. Assume that the company expects to sell 20.300 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg SA Reg 1 Reg 3 Reg 4 Reg 58 Reg 5C Reg 2 Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,400? (Do not round intermediate calculations, Round final answer to the nearest whole unit.) Show less Unitals to attain target profit 106,00 3 contention margin 5 (12.000) Net operating loss 10 po Required: 1 Compute the company's CM ratio and its break even point in unit sales and dollar sales 2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an $81000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising budget, will double unit sales. Ir the sales manager is right what will be the revised net operating income foss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have 5. Refer to the original cata. By automating, the company could reduce variable expenses by S3 per unit. However, fired expenses would increase by $55.000 each month a Compute the new CM ratio and the new break-even point in unit sales and dollar sales b. Assume that the company expects to sell 20.300 units next month Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.300)? Reference Complete this question by entering your answers in the tabs below. Reg SA Reg! Reg Reg 4 Reg 5B Reg 5C Reg 2 Refer to the original data. By automating, the company could reduce variable expenses by 53 per unit. However, fixed expenses would increase by $55,000 each month. Compute the new CM ratio and the new break even point in unit sales and dollar sales. (Do not round Intermediate calculations. Round 'CM ratio to the nearest whole percentage (1, 0.234 should be entered as "23") and other answers to the nearest whole number) Show less CM ratio Break-even point in unit sales Break-even point in dollar sales