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ONLY NEED NUMBER 2 Key Storsge Inc. produces USB drtwes. Soles hove been very errstic, with some months showing s profit snd some montha showing
ONLY NEED NUMBER Key Storsge Inc. produces USB drtwes. Soles hove been very errstic, with some months showing s profit snd some montha showing s
los. The compony's contribution format income statement for the moat recent month is glven below:
Requlred:
Compute the compeny's CM ratio snd th breakeven point in both un'ta and dollars. Do not round intermediate calculations.
Round your "Breskeven point in units" answer up to nearest whole number.
Answer is complete but not entirely correct.
The ssles mansger feels thst on $ incresse in the monthly sdvertaing budget, combined with sn intenatied effort by the
soles staff, will resut in s $ incresse in monthly sales. If the ssles manoger is right, what will be the effect on the compony's
monthly net opersting income or los:? Use the Incrementsi spprosch in prepsring your answer.
Answer is complete but not entirely correct.
Refer to the original dsta. The preaident is convinced that a reduction in the selling price, combined with an increase
of $ in the monthly odvertsing budget, will double unt sales. Should the compony make these changes?
Ye:
No
Refer to the original dsta. The compony's advertiaing sgency thinks that o new pscksge would he'p sslea. The new pocksge being
proposed would incresse pockoging costs by $ per unt. Assuming no other chsinges, how msny units would have to be sold esch
month to earn a profit of $Do not round Intermedlate calculstions. Round your snswer up to nesrest whole number.
Refier to the ariginal dsta. By outamating, the compsny could a bah its varibale expense: in half. However, fixed costs would increase
by $ per month.
a Compute the new CM rato snd the new breskeven point in both units and dolers. Do not round intermedlate calculstions.
Round your "Contribution margin ratio" answer to decimal places. Round your "Breskeven point" answers up to nearest whole
number.
b Asaume thet the compsny expects to sell units next month. Prease two contribution format income statements: one
sasuming thst operations sre nat autamated, sind one sasuming that they are. Do not round Intermedlate calculations. Round 'Per
Untt" snd "Percentage" to decimal places.
Answer is not complete.
c This port of the question is nat port of your Connect asignment.
d What is the point of Indifference between the two options? Do not round Intermediate calculations. Round your answer up to
nearest whole number.AND DOWN
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