SALLOX OnOuterwe heducation.com/extwide html con contra bewerinchi palmibeachboard.com webapps 10 Cation Our ADP Ciday Com Own Front Door Professor Pod Homework Due to erratic sales of its sole product a high-capacity battery for laptop computer PEM, 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 (13,200 units 20 per unit) Variable speses Contribution margin Fixed penses Met operating loss 264.000 158405 105.000 117. $12,000 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 56,800 increase in the monthly advertising budget combined with an intensified effort by the sales staff will increase unit sales and the total sales by $87,000 per month of 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 $40,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income foss)? 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 $4.7007 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, foxed 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 20,400 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 well as in total, for each alternative Would you recommend that the company automate its operations Assuming that the company expects to sell 20.400 units Complete this question by entering your answers in the tabs below. Reg 1 Reg Reg 58 Reg 2 Red SA Rea SC 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 ( 0.24 should be entered as 23). CM ratio Break-even point in unit Sales Proy 2 of 3 Next > tch O E duce variable expenses by 53 per unit. However, foed expenses 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 20,400 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 well as in total, for each alternative Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg4 ReqSA Reg 58 Reg 5 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 (1.0., 0.234 should be entered as "23"), CM ratio Break-even point in unit sales Break-even point in dollar sales Ren1 Reg 2 > Complete this question by entering your answers in the tabs below Reg1 Rida 2 Red Reg4 Rey SA Re SB Reg 5 The president believes that a $5,000 increase in the monthly advertising budget, combined with an intensited effort by the sales staff, will increase unit ale and the total sales by $87,000 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.) Complete this question by entering your answers in the tabs below Reg R R Reg 5 na 5 Regs Refer to the al data. The manager convinced that a 10% reduction in the selling poi, come with an Increase of $40,000 in the monthly advertising budget, will double units. It the managers right, what will be the revised not operating income out should be untend negative Reg 2 Reg 2 Reg Reg 4 Reg SA Reg 58 Rog SC Refer to the original data. The Marketing Department thinks that a fancy sew 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 $4,7007 (Do not round intermediate calculations. Round final answer to the nearest whole unit) Show less Un sales to attain target pro Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Req 5B Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 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 (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 Reg 1 Reg 2 Reg 3 Reg 4 Req SA Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. Assume that the company expects to sell 20,400 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 Total Per Unit Automated Per Unit Total 96 % % Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req3 Reg 4 Reg SA Reg SB Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.400 units)? Yes ONO