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nave been very erratic lately, and the financial nealth of the company is in jeoparay. ror the most recent montn, kenema's contridution increase of $

nave been very erratic lately, and the financial nealth of the company is in jeoparay. ror the most recent montn, kenema's contridution increase of $85,000 in sales per month. Using this proposal, what will be the increase (decrease) in the company's monthly net
operating income?
Refer to the original data. A second alternative proposal recommends that the selling price be reduced by 10% followed by an
increase in monthly advertising of $36,000. This will double unit sales. Using this alternative proposal, what will be the revised net
operating income (loss)?
Refer to the original data. A third proposal has emerged. If the company replaces its labor force with automation, variable expenses
will reduce by $3 per unit. However, this automation would increase flxed expenses by $55,000 each month.
a. Compute the new break-even point in unit sales and dollar sales.
b. Assume that the company expects to sell 20,000 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.)
c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,000 units)?
this question by entering your answers in the tabs below.
Req 5A
Req 5B Req 5C Kenema Corporation, a company located in the beautiful Pacific NorthWest, manulactures a single product in its lacoma ractory. Sales
have been very erratic lately, and the financial health of the company is in jeopardy. For the most recent month, Rehema's contribution
format income statement is as follows:
Required:
Compute Rehema's break-even point in units and also in dollar sales.
A proposal is being made by management to increase monthly advertising by $6,100. It is estimated that this advertising will yield an
increase of $85,000 in sales per month. Using this proposal, what will be the increase (decrease) in the company's monthly net
operating income?
Refer to the original data. A second alternative proposal recommends that the selling price be reduced by 10% followed by an
increase in monthly advertising of $36,000. This will double unit sales. Using this alternative proposal, what will be the revised net
operating income (loss)?
Refer to the original data. A third proposal has emerged. If the company replaces its labor force with automation, variable expenses
will reduce by $3 per unit. However, this automation would increase fixed expenses by $55,000 each month.
a. Compute the new break-even point in unit sales and dollar sales.
b. Assume that the company expects to sell 20,000 units next month. Prepare two contribution format income statem
format income statement is as follows:
Required:
Compute Rehema's break-even point in units and also in dollar sales.
A proposal is being made by management to Increase monthly advertising by $6,100. It is estimated that this advertising will yield an
increase of $85,000 in sales per month. Using this proposal, what will be the increase (decrease) in the company's monthly net
operating income?
Refer to the original data. A second alternative proposal recommends that the selling price be reduced by 10% followed by an
increase in monthly advertising of $36,000. This will double unit sales. Using this alternative proposal, what will be the revised net
operating income (loss)?
Refer to the original data. A third proposal has emerged. If the company replaces its labor force with automation, variable expenses
will reduce by $3 per unit. However, this automation would increase fixed expenses by $55,000 each month.
a. Compute the new break-even point in unit sales and dollar sales.
b. Assume that the company expects to sell 20,000 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.)
c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,000 units)?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Req 3
Req 5A
Req 5B
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