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Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a loss.
Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (15,500 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating loss $ 310,000 232,500 77,500 88,500 $(11,000) 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.5 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $5,200? (Do not round intermediate calculations. Round your answer up to nearest whole number.) Answer is complete but not entirely correct. Unit sales to attain target profit 20,822 units
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