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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
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: |
Sales (12,600 units $20 per unit) | $ | 252,000 |
Variable expenses | 126,000 | |
Contribution margin | 126,000 | |
Fixed expenses | 141,000 | |
Net operating loss | $ | (15,000) |
4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.40 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,900 (Do not round intermediate calculations and round your final answer to the nearest whole number.) ales units
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