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Need all of the answer asap please. Thank you 10 Check my won 3 Problem 5-22 CVP Applications;Contribution Margin Ratio; Break-Even Analysis; Cost Structure (LO5-1,
Need all of the answer asap please. Thank you
10 Check my won 3 Problem 5-22 CVP Applications;Contribution Margin Ratio; Break-Even Analysis; Cost Structure (LO5-1, LO5.3, LO5-4,105-5, LO5-61 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: oints Skipped Sales (12,800 units x $20 per unit) 256,000 128,000 128,000 143,000 (15,000) eBookVariable expenses Contribution margin Fixed expenses Net operating loss Print eferences 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 $6,700 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 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 selling price, combined with an increase of $30,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? 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 0.80 cents per Assuming no other changes, how many units would have to be sold cach month to attain a profit of $4,700? 5. Refer to the original data. By automating, the company could-reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 20,600 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming thathey are target unit and CWoutd yourecommend that the compam peratlOns ASSsumingsthat theco Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5A Req 58 Req 5c Compute the company's CM ratio and its break-even point in unit sales and dollar sales Step by Step Solution
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