Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need Requirements #4 & #5B. The answer for Req #4 is wrong in this pic. Problem 5-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even

I need Requirements #4 & #5B. The answer for Req #4 is wrong in this pic.

image text in transcribedimage text in transcribedimage text in transcribed

Problem 5-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6] Due to erratic sales of its sole product-a high-capacity battery for laptop computersPEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (13,000 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 260,000 156,000 104,000 116,000 $ (12,000) 3 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4 Reg 5A Req 5B Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $59,000 each month. Assume that the company expects to sell 20,200 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 unit and percentage basis, as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Show less % Sales Variable expenses Contribution margin Fixed expenses Net operating income PEM, Incorporated Contribution Income Statement Not Automated Per Total Unit % S 404,000 $ 20 100 $ 202,000 X 10 X 50 X 202,000 $ 10 50 116,000 $ 86,000 $ 100 60 X OOOOO Automated Per Total Unit 404,000 $ 20 242,400 X 12 X 161,600 $ 8 116,000 45.600 40 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 Req 5A Req 5B Req 5C Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.80 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,500? (Do not round intermediate calculations. Round final answer to the nearest whole unit.) Show less A Unit sales to attain target profit 10,759

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting An Introduction To Financial And Management Accounting

Authors: Jill Collis, Roger Hussey, Andrew Holt, Holt Collis, J. Collis

2nd Edition

0230276237, 978-0230276239

More Books

Students also viewed these Accounting questions

Question

=+e. Storytelling present product in a story.

Answered: 1 week ago