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Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package
Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.80 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4, 400? (Do not round your intermediate calculations. Round your final answer to nearest whole number.) Refer to the original data. By automating, the company could reduce variable expenses in half. However, fixed expenses would increase by $60,000 each month. a. Compute the new CM ratio and the new break-even point in both unit sales and dollar sales. (Use the CM ratio to calculate your break-even point in dollars. Do not round your intermediate calculations. Round up your final break even answers to the nearest whole number.) b. Assume that the company expects to sell 20, 500 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. c. Would you recommend that the company automate its operations
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