Due to erratic Sales of its sole product- a high capacity battery for laptop computers Dash PEM, Inc., has been experiencing financial difficulty for sometime. The companies contribution format, income statement for the most recent month is given below.

Sales (13,200 x $30). 396,000

variable expense 237,600

contribution margin 157,400

Fixed Expenses 176,400

2) the president believed that a $6700 increase in the monthly advertising budget, combined with intensified effort by the sales staff, will increase the unit sales in total sales by $80,000 per month. If the president is right, what will be the increase in the companies 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 $38,000 in the monthly advertising budget, will double unit sales. If the sales manager is right what will be the revised net operating income?

4) refer to the original data the marketing department think so fancy new package for the laptop computer battery with gross sales. The new package will increase packaging cost five $.70 per unit assuming no other changes