Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes thata $6,100 increase in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes thata $6,100 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $85,000 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 $34,000 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 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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)? Complete this question by entering your answers in the tabs below. Req 1 Req 3 Req 4 Req SA Req 5B Req SC Req 2 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").) % CM ratio Break-even point in unit sales Break-even point in dollar sales Original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increa int $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net ope income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would sales. The new package would increase packaging costs by 0.60 cents per unit. Assuming no other changes, how many units v have to be sold each month to atta in a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expens would increase by $52,000 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 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)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 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 the sales staff, will result in an $85,000 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.) by Req 1 Req 3 Compute the company's CM ratio and its break-even point in unit sales and dollar sales. . The president believes that a $6,100 increase in the monthly advertising budget, combined with an intensified efffort by the sales taff, will result in an $85,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? B. Refer to the original data. The sales manager is convinced that a 10 % reduction in the selling price, combined with an increase of $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating ncome (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 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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)? Complete this question by entering your answers in the tabs below. Req 2 Req SA Req 1 Req 4 Req 5B Req SC Feq 3 Req 3 Refer to the original data. The savesenager is convinced that a 10% reduction in the selling price, combined with an increase of $34,000 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) Req 4> Req 2 arame Sac I proddct angncapacity Dattery Torlaptop computers PE difficulty for some time. The company's contribution format income statement for the most $ 390,000 234,000 156,000 174,000 Sales (13,000 units x Variable expenses Contribution margin $30 per unit) Fixed expenses $ (18,000) Net operating loss 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, combine staff, will result in an $85,000 increase in monthly sales. If the president is right, what will be manthlu nat anaratina income? Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes thata $6,100 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $85,000 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 $34,000 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 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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)? Complete this question by entering your answers in the tabs below. Req 1 Req 3 Req 4 Req SA Req 5B Req SC Req 2 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").) % CM ratio Break-even point in unit sales Break-even point in dollar sales Original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increa int $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net ope income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would sales. The new package would increase packaging costs by 0.60 cents per unit. Assuming no other changes, how many units v have to be sold each month to atta in a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expens would increase by $52,000 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 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)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 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 the sales staff, will result in an $85,000 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.) by Req 1 Req 3 Compute the company's CM ratio and its break-even point in unit sales and dollar sales. . The president believes that a $6,100 increase in the monthly advertising budget, combined with an intensified efffort by the sales taff, will result in an $85,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? B. Refer to the original data. The sales manager is convinced that a 10 % reduction in the selling price, combined with an increase of $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating ncome (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 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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)? Complete this question by entering your answers in the tabs below. Req 2 Req SA Req 1 Req 4 Req 5B Req SC Feq 3 Req 3 Refer to the original data. The savesenager is convinced that a 10% reduction in the selling price, combined with an increase of $34,000 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) Req 4> Req 2 arame Sac I proddct angncapacity Dattery Torlaptop computers PE difficulty for some time. The company's contribution format income statement for the most $ 390,000 234,000 156,000 174,000 Sales (13,000 units x Variable expenses Contribution margin $30 per unit) Fixed expenses $ (18,000) Net operating loss 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, combine staff, will result in an $85,000 increase in monthly sales. If the president is right, what will be manthlu nat anaratina income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard Lewis, David Pendrill

6th Edition

0273638335, 978-0273638339

More Books

Students also viewed these Accounting questions

Question

What are the purposes of performance appraisals?

Answered: 1 week ago