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Company DEF produces USB memory sticks The company's condensed income (or loss in this case) statement is presented below 13500 units 20 USD) Sales Variable
Company DEF produces USB memory sticks The company's condensed income (or loss in this case) statement is presented below 13500 units 20 USD) Sales Variable expenses Fixed expenses Net loss 270000 189000 90000 -9000 You are required to: 1 Compute company's CM ratio 2 Compute break-even point in units 3 Compute break-even point in dollars 4 Using the incremental approach what would be an effect on the income statement if the marketing budget would be increased by 9000 USD per month under the CEO's belief that it will increase the sales by 71000 USD 5 Forget about 4 and refer to original data. What if selling price would be reduced by 11 % and the marketing budget would be increased by Assume it will double the sales of flash drives on a per unit basis Produce the new contribution format income statement 6 Forget about 4 and 5 and refer to original data. CEO thinks they need to include a free strap to each USB drive sold to make it more attractive That would result in increased cost by 0.5 USD per unit He really wants to make a profit of 4550 USD How many units should be sold in order to generate such profits? It is ok to get fractional answer What would be the degree of operating leverage in this scenario? 4000 USD
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