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I ONLY NEED 5B PLEASE!!! Sales (13,400 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $268,000 134,000 134,000 149,000

image text in transcribedI ONLY NEED 5B PLEASE!!!

Sales (13,400 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $268,000 134,000 134,000 149,000 $(15,000) 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 $6.300 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89.000 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 seling price, combined with an Increase of $39,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income foss)? 4. 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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4.200? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20.900 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 alterative.) C. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900)? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Req5B Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. Assume that the company expects to sell 20,900 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 lessA PEM, Inc. Contribution Income Statement Not Automated Automated Total Per Per Unit Total % Unit S Sales s 20 418,000 100% 418.000 S 21101% Variable expenses 146,301X X 61% 209,000 10% 50% Contribution margin 271,700 S 13 40 % 209,000 S 10 50 % Fixed expenses 200,001% 149,001% Net operating income S 71,700 S 60.000 Is

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