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PLEASE HELP! RIGHT ANSWERS ONLY Key Storsge Inc. produces USB drives. Soles hove been very errotic, with some months showing s profit snd some montha
PLEASE HELP! RIGHT ANSWERS ONLY Key Storsge Inc. produces USB drives. Soles hove been very errotic, with some months showing s profit snd some montha showing s
los. The compony's contribution formst income statement for the moat recent month is glven below:
Requlred:
Required: Compute the compeny's CM rstio snd its breakeven point in both un's and dallars. Do not round intermediate calculations.
Round your "Breskeven point In unlts" answer up to nearest whale number.
The sales manager feela that on $ incresse in the monthly sclvertialng budget, combined with sn intena fied effort by the
soles staff, will resut in s $ incresse in monthly asles. If the ssles manoger ls right, what will be the effect on the compony's
monthly net opersting lincome or los:? Use the incrementsl spprosch in prepsring your answer.
E
of $ in the monthly odvertsing budget, will double unt asiea. Should the compony moke these changes?
Yea
No
Refer to the original dsta. The compony's advertalng sgency thinks that s new pscksge would help ssles. The new pscksge being
proposed would incresse pockeging costa by $ per unt. Asauming no other changea, how many units would hsve to be sold esch
month to eam a profit of $Do not round Intermedlate calculstions. Round your answer up to nearest whole number
Refer to the ariginel dats. By outomating, the compsny could a a ah its variable expenses in half. However, fixed costs would increase
by $ per month.
a Compute the new CM rsto snd the new breokeven point in both units and dolers. Do not round Intermediate calculstions.
Round your "Contrlbutian margin ratio" answer to decimal places. Round your "Breskeven polnt" answers up to nearest whole
number.
b Asaume thet the compsny expects to sell units next month. Prepore two contribution formst income statements: one
sauming that operations sre not outomsted, snd one sasuming that they sre. Do not round Intermediste calculatlons. Round Pe
Unlt" and "Percentage" to decimal places.
c This port of the question la nat part of your Connect asignment.
d What is the point of indifierence between the two options? Do not round Intermediate calculations. Round your answer up to
nearest whole number.
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