Question
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) |
Required: | |||||||||||||||||
. | 1.Compute the companys CM ratio and its break-even point in both unit sales and dollar sales.
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