Preview Fle Edit View Co Tools Window Help 3 Mon Dec 28 7 10 PM Screen Shot 2020-12-28 at 7.09.57 PM Due to erratic sales of its sole product-a high-capacity battery for laptop computersPEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (12,900 units x $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 387,000 193,500 193,500 216,000 $ (22,500) 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 $6,100 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 $31,000 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 $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 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 20,800 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 20,800)? Preview Fie Edit View Co Tools Window Help 4) Q8 Man Dec 29 7 12 PM - Screen Shot 2020-12-28 at 7.11.24 PM would increase by $57,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. o. Assume that the company expects to sell 20,800 units next month. Prepare two contribution format income stater assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percenta as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20, Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Reg 4 Req 5A Req 5B Req 5C The president believes that a $6,100 increase in the monthly advertising budget, combined with an intensified effort by th sales staff, will result in an $80,000 increase in monthly sales. If the president is right, what will be the increase (decreas the company's monthly net operating income? (Do not round intermediate calculations.) Increases by $ 13,900 Preview File Edit View Co Tools Window Help 3 Q8 Man Dec 29 7:13 PM DIY Screen Shot 2020-12-28 at 713.22 PM Q Search sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units w to be sold each month to attain a target profit of $4,200? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed ex would increase by $57,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. o. Assume that the company expects to sell 20,800 units next month. Prepare two contribution format income statements, assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bas as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,800)? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Req 4 Req 5A Reg 5B Req 5C Refer to the original data. The sales manager is onvinced that a 10% reduction in the selling price, ined with an increase of $31,000 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 (loss) $ 54,600 Preview File Edit View Co Tools Window Help Q8 Man Dec 29 7 14 PM - Screen Shot 2020-12-28 at 7.14.23 PM o. Refer to the original data. By automating, the company could reduce variable expenses by $5 per unit. However, fixed ex would increase by $57,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. o. Assume that the company expects to sell 20,800 units next month. Prepare two contribution format income statements, assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bas as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,800)? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Req 5A Reg 5B Req 5C 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 $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200? (Do not round intermediate calculations. Round final answer to the nearest whole unit.) Show less A Unit sales to attain target profit Preview Fle Edit View Co Tools Window Help Q8 Man Dec 29 7:15 PM - Screen Shot 2020-12-28 at 7.15.34 PM Q Search . Reren we ungmai atd. Dy Gundung, me company couvreuute van die expenses per u. However, heu expe would increase by $57,000 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 20,800 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 in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,800)? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4 Req 5A Req 5B Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 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 (i.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 Preview Fle Edit View Co Tools Window Help 3 Q8 Mon Dec 28 7 17 PM VOL RICAVIRTI OY Screen Shot 2020-12-28 at 7.16.53 PM 5 - vwyr vu v VoirVyrVIOIVINVOLVIOUS - VIDEO 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 20,800 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 20,800)? X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Reg 5A Req 5B Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $57,000 each month. Assume that the company expects to sell 20,800 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, Inc. Contribution Income Statement Not Automated Per % Unit % Automated Per Unit Total Total % % % 0 IS 0 0 % 0 $ 0 0 % $ 0 $ 0