please help with all parts
CHOS SET-A Check my work mode: This shows what is correct or incorrect for the work you have completed so to 10 Problem 5-22 CVP Applications: Contribution Margin Ratio: Break-Even Analysis: Cost Structure [LO5-1, LO5-3LO5-4, LO5-5, L05-6) 1 Due to erratic sales of its sole product-a high-capacity battery for laptop computers--PEM, Inc., has been experiencing financial dificulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (19,500 units x $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $585,000 409, See 175,500 180,000 S (4,500) 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 $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an $80,000 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 $60,000 in the monthly advertising budget will double unit sales. Ir 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 26,000)? CHOS SETA Check my work mode: This shows what is correct or incorrect for the work you have comple 10 pont 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 $60,000 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 orginal 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9.7507 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 26,000)? A Answer is not complete. Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4 Reg SA Reg 58 Reg SC Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio' to the nearest whole percentage (.e., 0.234 should be entered as "23").) CM ratio Break-even point in unit sales Break-even point in dolar sales 30 18,000 $ 600,000 Reg 2 > CHOS SETA Check my work mode: This shows what is correct or incorrect for the work you have com 10 DO 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $16,000 increase in the monthly advertising budget combined with an intensified effort by the sales staff will result in an $80,000 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 560,000 in the monthly advertising budget, will double unit sales, if the sales manager is right, what will be the revised net operating income foss)? 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 26,000)? Answer is not complete. Complete this question by entering your answers in the tabs below. Regi Ree 2 Reg 3 Reg 4 ReqSA Resc Reg 50 The president believes that a $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? (Do not round Intermediate calculations.) Reg1 Reg3 > Check my work mode: This shows what is correct or incorrect for the work you have 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $15,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80,000 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 560,000 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 26,000)? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 ' Reg 4 Red SA Reg 5B Reg 5C Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $60,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Revised net operating income CHOS SET-A Check my work mode : This shows what is correct 10 1. Compute the company's CM ratio and its break even point in unit sales and dollar sales. 2. The president believes that a 516,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80,000 increase in monthly sales. If the president is right what will be the increase (decrease) in the company 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 560,000 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 we as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 26,000)? Answer is not complete Complete this question by entering your answers in the tabs below. Rega Reg 58 Reg 2 Red SA Reg SC Reg 3 Regi 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750? (Do not round intermediate calculations.) Un sales to attain target pro Saved CHOS SET-A Check my work mode: This shows what is correct or Incorrect for the work you have co 10 point 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2. The president believes that a $16,000 increase in the monthly advertising budget combined with an intensified effort by the sales staff, will result in an $80,000 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 560,000 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 onginal 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 75 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9.750? 5. Refer to the original data. By automating, the company could reduce variable expenses by 53 per unit. However, fixed expenses would increase by $72,000 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 26,000 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 26,000)? Answer is not complete Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Reg Reg. Reg 50 Reg 5 Refer to the original data. By automatine, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 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 ration 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 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. Ita 10 M. SL CALLS W ZULU CAPITOLUL MUCH, 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 26,000)? Answer is not complete. - Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Red SA Reg 5C Reg 55 Refer to the original data. By automating, the company could reduce variable expenses by $5 per unit. However, fixed expenses would increase by $72,000 each month. Assume that the company expects to sell 26,000 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.) Show less PEM, Inc. Contribution Income Statement Not Automated Per Unit 5 Automated Per Unit Total Total + % % 0 S 0 0 S 0 0 0 0