Document2 - Word Search Home Insert Draw Design Layout References Mailings Review Ebony Avery View Help Share Comments X Podenco Format Painter Choboard Calibri (Body 41 A A A A BIUXX A-AA EE E Normal No Space Heading 1 Heading 2 Subtitle Subtle I'm Emphasis Title Find Replace Select- Font Dictate Fitur Due to erratic sales of its sole product a high-capacity battery for laptop computersPEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Styles Editing Editor Balas 413,200 units 530 per umit) Variable expenses Contribution margin Fixed expenses Het operating loss $396,000 198,000 199.000 220, 500 $ 122,500) 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 58,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 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. I the sales manager is right, what will be the revised net operating income (los)? 4. Refer to the data. The Marketing month to attain a profit of $4,900? 5. Refer to the original data. By automating the company could reduce variable expenses by $3 per unit. However, Mixed experises would increase by $54,000 each month. . Assume that the company expects to sel 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 un and percentage basis, as well as in total, for each alternative. Would you recommend that the company automatets operations (Assuring that the company expects to sell 20,300)? Cplete this question by entering your answers in the tabs below Req5A SC romaid them and even point in unt sales and do 0.24 hod beantradas "23"1.) Type here to search o 11:35 AM ly changes, how many units would have to be sent thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.40 per unit Assuming no other new ind imediate LCopy uuy) A A A Paste 21 $ Format Painter BI V ab x A Au 1 Normal 1 No Spac... Heading 1 Heading 2 Clipboard Title Subtit Font Paragraph Reg 1 Req 2 Reg 3 Reg 4 Reg 5A Reg 58 Styles Req 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 (i.e., 0.234 should be entered as "23").) 50% CM ratio Break-even point in unit sales Break-even point in dollar sales Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req SA Req 5B Req SC The president believes that a $6,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 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.) Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Reg 3 Reg 4 Req SA Reg 5C Reg 58 Increase of $29,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an revised net operating income (loss)? (Losses should be entered as a negative value.) Revised not operating income (loss) 342 of 469 words O ET Type here toch lip NoSave a US Document2 - Word Search Home Insert Draw Design Layout References Mailings Review View Help Picture Format X Cut Le Copy Format Painter Calibri (Body) 11 - A Aa Po SEE AL BI Uweb X, X A.P.A. E 1 et 1 Normal 1 No Spac... Heading 1 Heading 2 Subtle Em Emphasis Title Subtitle Clipboard Font Paragraph Styles Complete this question by entering your answers in the tabs below Reg 5 Reg 2 Reg 1 Reg 4 Reg 5C Reg 3 Reg SA Refer to the original data. The Marketing Cepartment thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,900? (Do not round intermediate calculations. Round final answer to the nearest whole unit.) Show less Unit sales to attain target profit Complete this question by entering your answers in the tabs below. Feg 4 Reg 5A Reg 5B Reg SC Reg 3 Req Reg 2 Refer to the original data. By automating, the company could reduce variable expenses by sa per unit. However, fixed expenses would increase by $54,000 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 ration to the nearest whole percentage i... 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 C Reg 4 Req 5B > DE Type here to search Format Painter BI U ab x x A Clipboard Font Paragraph Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Req 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However ixed expenses would increase by $54,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300 Yes ) No