Problem 5-22 Basics of CVP Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6]

Problem 5-22 Basics of CVP Analysis; Cost Structure LO5-1, LO5-3, LO5-4, LO5-5, LO5-6] Due to erratic sales of its sole produc-a high-capacity battery for laptop computers PEM, Inc., has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (12,900 units x S$40 per unit $516,000 Variable expenses 309.600 Contribution margin 206.400 230,400 Fixed expenses Net operating loss (24,000)