Problem 5-22 [Algal CUP Applications; Contribution Margin Ratio; Break-Even Analysis: Cost Structure [L051, LOB-3, LOB-4, LOB-5, LOB-6] Due to erratic sales of Its sole producta high-capacity battery for laptop computersREM. Incorporated. has been experlencing financlal difficulty for some time. The company's contribution format Income statement for the most recent month Is given below: Sales (13,888 units a: $28 per unit} 3 268,888 I.a'ar'iable expenses 156,888 Contribution margin 184,888 Fixed expenses 116,888 Net operating loss S (1239993 Requlred: 1. Compute the company's CM ratIo and its break-even point in unit sales and dol!ar saies. 2. The president belleyes that a $6.600 increase in the monthly advertising budgeL comblned with an Intensied effort by the sales staff. will Increase unit sales and the total sales by $81,000 per month. If the president Is rlght. whatwlll be the Increase [decrease} in the company's monthly net operating Income? 3. Refer to the original data. The sales manager is convlnced that a 10% reduction in the selllng price. comblned with an Increase of 535.000 In the monthly advertlslng budget. will double unIt sales. If the sales manager is right. what will be the :evlsed net operatlng Income [loss]? 4. Refer to the originai data. The Marketing Department thinks that a fancy new package for the iaptop computer battery would grow sales. The new package would Increase packaglng costs by $0.50 per unit. Assuming no other changes. how many units would have to be sold each month to attaln a target prot of $4300? 5. Refer to the original data. By automating. the company couid reduce variable expenses by 83 per unit. However. fixed expenses would Increase by 3953.000 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 20.300 units next month. Prepare two contrlbutlon format income statements. one assuming that operations are not automated and one assumlng that they are. [Show data on a per unlt and percentage basis. as well as in total. for each alternative.) c. 1u'i'ould you recommend that the company automate its operatlons {Assumlng that the company expects to sell 20.300 unlts]? Complete this question by entering your answers in the labs below. Req 1 Rec; 2 Req 3 Reg 4 Red 5A Req 53 Reg 58 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 (i.e.. 0.234 should be entered as '23"). .1a Bleakeven point in unit sales 14.500 I Bleak-even point in dollar sales 5 290.000 I 7 Problem 5-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6] 29.9 points 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: Sales (13,000 units * $20 per unit) $ 260,090 Book Variable expenses 156, 090 Contribution margin 104, 006 Fixed expenses 116, 600 Net operating loss $ (12,080) Ask Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. Print 2. The president believes that a $6,600 Increase in the monthly advertising budget, combined with an Intensified effort by the sales staff, will increase unit sales and the total sales by $81,000 per month. If the president is right, what will be the Increase (decrease) In the company's monthly net operating Income? References 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 (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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $53,000 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 20,300 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 20,300 units)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5A Req 58 Req 5C The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $81,000 per month. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculations.) Increases by 25,800 Req 1 Req 3Referen :25 Problem 5-22 [Algo] CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LOB-1, L05-3, LOB-4, LOB-5. LOB-6] Due to erratic sales of Its sole producta high-capacity battery for laptop computersFEM. Incorporated. has been experiencing financial difficulty for some time. The company's contribution format Income statement for the most recent month Is given below: Sales (13,999 units at $28 per unit} 5 268,888 variable expenses 156,888 contribution margin 184,888 Fixed expenses 116,888 Net operating loss 5 (12.1999) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that at $6.600 increase in the monthly advertising budget. combined with an Intensied effort by the sales staff. will Increase unit sales and the total sales by $81000 per month. If the president Is right. whatwlll be the Increase [decreasei 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 535000 In the monthly advertising budget. will double unit sales. ifthe sales manager is right. what wrll be the revised net operating Income iioss]? 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 $0.50 per unit. Assuming no other changes. how many units would have to be sold each month to attain a target profit of$4.?00? 5. Refer to the original data. By automating. the company could reduce variable expenses by 83 per unit. However. fixed expenses would Increase by $53000 each month. a. Compute the new CM ratio and the new break-even point In unit sales and dollar sales. b. .issume that the company expects to sell 20.300 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 anti percentage basis. as well as in totai. for each alternative.) c. 1i'i'ould you recommend that the company automate its operations {Assuming that the company expects to sell 20.300 unltsi? Complete this question Irv entering your answers in the labs below. Reg 1. Reg 2 Reg 3 Reg 4 Reg 5A Req SB Reg 5C Refer to the original data. The sales manager is convinced 'lat a 10% reduction in the selling price, oombinecl with an increase of $35,000 in the monthiy 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} Problem 5-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6] 29.9 points 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: Sales (13,080 units x $20 per unit) $ 260, 060 Book variable expenses 156, 060 Contribution margin 104, 090 Fixed expenses 116, 006 Net operating loss $ (12, 080) Ask Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. Print 2. The president believes that a $6,600 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $81,000 per month. If the president is right, what will be the Increase (decrease) In the company's monthly net operating Income? References 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 (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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would Increase by $53,000 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 20,300 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 20,300 units)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5A Req 58 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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700? (Do not round intermediate calculations. Round final answer up to the nearest whole unit.) Show less A Unit sales to attain target profit/ 29.9 po :nts eBook Referee ces Problem 5-22 (Algoj CVF' Applications; Contribution Margin Ratio; Break-Even Analysis: Cost Structure [LOB-1, LOB-3, LOB-4, LOB-5, LOIS-6] Due to erratic sales of Its sole producta high-capacity battery for laptop computersFEM. Incorporated. has been experiencing financial difficulty for some time. The compa ny's contribution format Income statement for the most recent month Is given below: Sales (13,000 units at $20 per unit} 5 260:000 variable expenses issyooa contribution margin Jeanette Fixed expenses ilsyooa Net operating loss S (12:9993 Required: 1. Compute the company's CM ratio and its breakeven point in unit sales and dollar sales. 2. The president believes that a $6.600 increase in the monthly advertising budget combined with an Intensied effort by the sales staff. will Increase unit sales and the total sales by $81,000 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 835,000 In the monthly advertising budget. will double unIt sales. It the sales manager ls right. what will be the revised net operating Income [loss]? :1. 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.?00? 5. Refer to the original data. By automating. the company could reduce variable expenses by 83 per unit. However. fixed expenses would Increase by $51000 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 20.300 units next month. Prepare two contribution format income statements. one assuming that operations are not automated and one assuming thatthey are. [Show data on a per unit and percentage basis. as well as in totai. for each alternative.) c. 1l'i'ould you recommend that the company automate its operations [Assuming thatthe company expects to sell 20.300 units}? Complete this question Irv entering your answers in the tabs below. Reg 1 Reg 2 Req 3 Reg 4 I Reg 5A l Reg 53 Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. HoweverJ fixed expenses would increase by $53,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar safes. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage {Lew 0.234 should be entered as "23"), round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole doEiar.) Show less; CM ratio Break-even point in unit sales Break-even point in dollar sales 7 19.9 Joints eBook Ask H Print 'EI Refs re rites Sales (13,093 units at $28 per unit} 3 268,888 I\"Variable expenses 156,888 Contribution margin 1845800 Fixed expenses 116,886 Net operating loss 33 (12:9993 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 $6,600 Increase in the monthiy advertising budget combined with an Intensied effort by the sales staff. wit! Increase unit sales and the totai sales by $81,000 per month. Ifthe 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 $35000 In the monthly advertising budget. wiii double unlt safes. if the sates 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 wouid 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 prot of $4300? 5. Refer to the original data. By automating. the company could reduce variable expenses by $3 per unit. However. fixed expenses would Increase by $53000 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 20,300 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 wet! as In total. for each ahernatiire.) c. Wouid you recommend that the company automate its operations (Assuming that the company expects to self 20.300 units]? Complete this question by entering your answers in the labs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5A ' Reg 53 E Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, xed expenses would increase by $53,000 each month. Assume that the company expects to sell 20.300 units next month. Prepare two contribution torn-lat income statements, one assuming that opelaons 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 altemative.) {Do not round your intermediate anculations. Round your percentage answers to the nearest whole number.) Show IessA 29.9 points Referer ces Problem 5-22 (Algal CVP Applications; Contribution Margin Ratio; Break-Even Analysis: Cost Structure [L051, LOB-3, L05-4, L05-5, L05-6] Due to erratic sales of Its sole producta high-capacity battery for laptop computersFEM. Incorporated. has been experiencing financial difficulty for some time. The company's contribution format Income statement for the most recent month Is given below: Sales (13,009 units x $28 per unit} $ 268,888 IVariable expenses 156,888 contribution margin 184,888 Fixed expenses 116,88. Net operating lcss $ (12:999J 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 $6.600 increase in the monthly advertising budget combined with an Intensied effort by the sales staff. will Increase unit sales and the total sales by $81000 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 535.000 In the monthly advertising budget. will double unit sales. If the sales manager is rtght. what will be the revised net operating Income [loss]? 4. Refer to the origina! 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 $0.50 per unit. Assuming no other changes. how many units would have to be sold each month to attain a target prot of$=i.?00? 5. Refer to the original data. By automating. the company could reduce variable expenses by 83 per unit. However. fixed expenses would Increase by 3953.000 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 20.300 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 20.300 units]? Complete this question by entering your answers in the labs below. Req 1. Reg 2 Reg 3 Reg 4 Reg 5A Req SB Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However. xed expenses would increase by $53,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300 units)