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4 Sales (19 500 units 30 per unit) Variable lexpense:s Contribution margin Fixed expenses let operating loss $ 585,000 409,50e 175, s88 186, 868 $
4 Sales (19 500 units 30 per unit) Variable lexpense:s Contribution margin Fixed expenses let operating loss $ 585,000 409,50e 175, s88 186, 868 $ (4,5ee) points Required 1. Compute the company's CM ratio and its break even point in unit sales and dollar sales The president believes that a $16.000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, vall result in an $80.000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net perating income? 3 Refer the original dala The les manager sc nced that a 10% reduction in the selling price combined with nin rease of $60,000 in the monthly advertising budget, will double unit sales. If the sales manager is nght, what will be the revised net operting 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 75 cents per unit Assuming no other changes, how many units would Print Referenceshave to be sold each month to attain a target profit of $9,750? 5 Refer to the original data By automating. the company could reduce variable expenses by $3 per unit However, fixed expenses would increase by $72,000 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 26.000 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 w as in total for each alternative) c Would you recommend that the company automate its operations (Assuming that the company expects to sell 26 000)? Complete this question by entering your answers in the tabs betow Req 1 Req 2 Req 3 Refer to the or ginal data. The Marketing Department thinks that a fancy new package for the laptop computer battery sales. The new package would increase packaging costs by 75 cents per unit Assuming no other changes, how profit of s9.7502 (Do not round intermediate calculations.) many units would have to be sold each month to attain a target
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