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please help me answer with the numbers from the problem! thank you so much! Due to erratic sales of its sole product-a high-capacity battery for
please help me answer with the numbers from the problem! thank you so much!
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 income statement for the most recent month is given below Sale (13,300 units * $20 per unit) $ 266,000 Variable expenses 159,600 Contribution margin 106,400 Tixed expenses 118,400 Net operating lors 5.612,000) 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 $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by 584,000 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 $38,000 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 50.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4700? 5. Refer to the original data. By automating, the con ny could reduce variable expens $1 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 20.200 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) Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.200 units)? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg4 Req SA Reg 58 Req5C Compute the company's CM ratio and its break-even point in unt sales and dollar sales. (Do not round Intermediate calculations. Round "Cration to the nearest whole percentage (1.e., 0.234 should be entered as "23"). CM radio Break-even point in unit sales Break even point in doller sales S Reet Reg 2 > Reg 1 Reg 2 Reg 3 Reg4 REQ SA Reg 58 Reg SC The president believes that a $6,300 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the Increase (decrease in the company's monthly net operating Income? (Do not reund Intermediate calculations.) ty Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 4 RA SA Resa Rea SC Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an Increase of $38,000 in the monthly advertising budget, will double unt sales. If the sales manager is right, what will be the revised net operating Income (less)? (Losses should be entered as a negative value.) Reg 1 Reg 2 Req3 Reg 4 Reg SA Reg 58 Reg SC 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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,7007 (Do not round Intermediate calculations. Round final answer to the nearest whole unit.) Show less tarpet prate Reg 1 Reg 2 Req3 Reg 4 Req SA Reg 58 Rea SC 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. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round Intermediate calculations. Round "CM ratio to the nearest whole percentage (1.e., 0.234 should be entered as "23") and other answers to the nearest whole number) Show less CM ratio Break-even point in unit sales Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Req1 Req2 Reg 3 Reg 4 Req SA Reg 58 Req SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, foxed expenses would increase by $55,000 each month. Assume that the company expects to sell 20,200 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.) (Do not round your intermediate calculations Round your percentage answers to the nearest whole number.) Show less PEM, Incorporated Contribution Income Statement Not Automated Automated Total Par Un Total Per Unit Req SA Reg 5C > Ren 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $ per unit. However, fixed expenses would increase by $55,000 each month. Would you recommend that the company automate its operations Assuming that the company expects to sell 20,200 units)? OYes NO Step by Step Solution
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