If the break-even chart is not done like this, it's not done correctly then.

https://youtu.be/1BDLh1jbB7U

VDak NG 04 05 15 26-05-2020 X AM102 X V fax AF AG AH Al AJ AK AL AM AN AO AP AO AR AS 102 103 SELLING PRICE = 30 104 VARIABLE COST 21 [409500/19500] 105 FIXED COST = 180000 106 107 1 CM RATIO = IN % 30.00% [175500/585000] 108 IN DECIMALS 0.30 109 110 BREAKEVEN POINT = FIXED COSTS/(SELLING PRICE - VARIABLE COSTS] 111 [UNITS] 180000/(30-21) 112 20000 113 114 BREAKEVEN POINT = FIXED COSTS/CM RATIO 115 [SALES] 180000/0.30 116 600000 117 118 2 PRESENT [A] REVISED [B] INCREMENTAL [B-A] 119 SALES 585000 665000 [585000 + 80000] 80000 120 VARIABLE COSTS 409500 465500 [665000 X 70%] 56000 121 CONTRIBUTION 175500 199500 24000 122 FIXED COSTS 180000 196000 [180000 + 16000] 16000 123 OPERATING INCOME -4500 3500 8000 124 125 EFFECT ON MONTHLY NET OPERATING INCOME = INCREASE OF 8000 FIFO CASH BUDGET budget |45 days cycle |MCE | ROE BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss | SALES BUDGE...O]Due to erratic sales of its sole product- a high-capacity battery for laptop computers- Parma Ltd. has been experiencing difficulty for some time. The company income statement for the most recent month is given below: Sales (19500 units*$30) $585 000 Less variable expenses........ 409 500 Contribution margin.......4. 175 500 Less fixed expenses......4:ass..:.: 180 000 (4 500) Required: 1. a) Compute the company's CM ratio and its break-even point in both units and dollars. b) draw a break even chart for the company 2. a) The president believes that a $ 16 000 increase in the monthly advertising budget combined with an intensified effort by the sales staff, will result in $80 000 increase in monthly sales. If the president is right, what will be the effect on the company's monthly net income or loss? b) draw a break even chart to show the new breakeven point