Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer the question this is the data this is the table to fill up. i tried to do it just double check my work
please answer the question
mapter 50 02:13:26 ellack rences Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format inceme statement for the most recent month is given below: Sales (13,100 units 530 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss Send $ 393,000 196,500 196,500 219,000 $(22,500) Help Required: t Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $86,000 per month. 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 $35,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (oss)? 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 $0.70 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,800? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $58,000 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 20.500 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 20,500 units)? Complete this question by entering your answers in the tabs below. Save & Ext Submit would increase by $58,000 each mu 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.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Sales Variable expenses Contribution margin Fixed expenses Net operating loss $ $ PEM, Incorporated Contribution Income Statement Not Automated Per Unit $13,100 13,100 0 Total 393,000 157,200 235,800 $ 277,000 (41,200) % 100 40 60 Show less A this is the data
this is the table to fill up. i tried to do it just double check my work and make a new table with your numbers
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started