Blackboard UMO n box Google Docs BUA 202 BUA 325 BUA328 List Wall Street Journal Che Spring 2020 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 $20 per unit) Sales (13,000 units Variable expenses Contribution margin Tixed expenses Net operating loss $ 260,000 130.000 130,000 $ 15,000) 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 $89,000 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 $30,000 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 $0.70 per unit. Assuming no other changes, how many units would have to be sold each month to w in a target profit of $4600? 5. Refer to the original data By automating, the company could reduce variable expenses by $3 perunt. However, fed expenses would increase by $59.0oo each month. a. Compute the new CM ratio and the new break even point in unt 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 In total, for eachternative Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.3007 Complete this question by entering your answers in the tabs below. MacBook Pro & 7 8 9 9 0 w Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an ind $30,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery wo sales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units wo to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed exp would increase by $59,000 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, on assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis. 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 1 Reg 2 Reg 58 Reg SC 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 (i.e., 0.234 should be entered as "23").) CM ratio Break-even point in sales Break-even point in dollars MacBook Pro 072 manager convinced that a 10% reduction in the selling price, combined with an increase $30,000 in the monthly advertising budget, will double unit Sales. If the sales manager is right, what will be the revised net operat income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would on sales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would ha to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by 33 per unit. However, fixed expenses would increase by $59,000 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 we 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 1 Reg 2 Reg 4 ReqSA Reg 58 Req 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 $89,000 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.) MacBook Pro w N Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery wou les. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units wou be sold each month to attain a target profit of $4,600? Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expe would increase by $59,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales Assume that the company expects to sell 20,300 units next month. Prepare two contribution format income statements, one ssuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, a s 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. Reg 1 Reg 2 Reg 3 Req 5A Req 5B Req 5C Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $30,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Revised not operating income foss) MacBook Pro w e original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of 30,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating come (loss)? Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow ales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would have be sold each month to attain a target profit of $4,600? Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fored expenses yould increase by $59,000 each month a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales 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 1 Reg 2 Reg 3 Reg4 Reg SA Reg 58 Reg SC 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 30.70 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,6007 (Do not round intermediate calculations. Round Final answer to the nearest whole unit) RSA MacBook Pro Blackboard UMO n box Google Docs BUA 202 TBUA 326 V BUA 326 List 5 - Spring 2020 Wall Street Journal Chegar 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $59,000 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 1 Reg 2 Reg 3 Reg 4 Reg 5B Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, foxed expenses would increase by $59,000 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 (Le., 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 Reg 58 > MacBook Pro soflolHk b. Assume that the company expects to sell 20.300 units next month. Prepare two contribution format income statements, one assuming that operations me 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 Reg 2 Reg 3 ReqSA Req 50 Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fed expenses would increase by $59,000 each month. 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.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole Show less Contribution Income Statement Not Automated Total Per Unit MacBook Pro and command would increase by $59,000 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, a 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 1 Reg 2 Reg 3 Req 4 Req 5A Rea SB Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $59,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? No MacBook Pro 23 UX