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Submit your assignment either in an uploaded document or picture or text entry. Due to erratic sales of its sole product-a high-capacity battery for laptop
Submit your assignment either in an uploaded document or picture or text entry. Due to erratic sales of its sole product-a high-capacity battery for laptop computers-3Z, Inc. has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (19,500 units x $30 per unit) Variable Expenses Contribution Margin Fixed Expenses Net Operating Loss $585,000 409,500 175,500 180.000 $ (4,500) Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollar sales. 2. The president believes that a $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80.000 increase in monthly sales. If the president is right, what will be the effect on the company's monthly net operating income or loss
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