Chapter 5 HW accounting

Due to erratic sales of its sole producta high-capacity battery for laptop computersPEM, Inc., has been experiencing difficulty for some time. The companys contribution format income statement for the most recent month is given below:

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b. Assume that the company expects to sell 20,400 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. PEM, Inc. Contribution Income Statement Not Automated Automated Total Per Unit Total Per Unit Cost of goods sold 0 01% 01% 0 0