Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

urgent pls. thanks. mofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some it and some months showing a loss.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

urgent pls. thanks.

mofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some it and some months showing a loss. The company's contribution format Income statement for the most recen W: ales (16,508 units) ess: Variable expenses Ontribution margin ess: Fixed expenses $ 660,000 495,000 165,000 170,000 $ (5,000) et operating loss quired: Compute the company's CM ratio and its break-even point in both units and dollars. (Do not round Intermediate und your "Break-even polnt In unlts" answer up to mearest whole number.) ontribution margin 300 165.000 % reak-even points reak-ever point in dollars ger feels that an $17.000 Increase in the monthly advertising budget, combined with an intensified effort $115.000 increase in monthly sales. If the sales manager is right, what will be the effect on the company's me or loss? (Use the incremental approach in preparing your answer.) Refer to the original data. The president is convinced that a 9% reduction in the selling price, the monthly advertising budget, will double unit sales. Should the company make these chang Yes No Defertel data- Refer to the original data. The company's advertising agency thinks that a new package would help sales. oposed would increase packaging costs by $0.5 per unit. Assuming no other changes, how many units WOL Enth to earn a profit of $5,400? (Do not round Intermedlate calculations. Round your answer up to neares lit sales to attain target profit units Eefer to the original data. By automating, the company could slash its variable expenses in half. However, fix- 680.000 per month. compute the new CM ratio and the new break-even point in both units and dollars. (Do not round Intermedle and your "Contributlon margin retlo" answer to 2 decimal places. Round your "Break.even point" answers aber.) - Assume that the company expects to sell 25,000 units next month. Prepare two contribution format Income statement assuming that operations are not automated, and one assuming that they are. (Do not round Intermediate calculations. Jnlt" and "Percentage to 2 decimal places.) Comparative Income Statements Not Automated Total Per Unit Percentage (%) Automated Total Per Unit Sales Percentage (98) 0 $ 0.00 0.00 0 $ 0.00 0.00 $ 0 S 0 5. Refer to the original data. By automating, the company could slash its variable expenses in half. Howeve by $80,000 per month. a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round Intern Round your "Contribution margin ratlo" answer to 2 decimal places. Round your "Break-even point" ans number.) % Contribution margin ratio Break-even point in units Break-even point in dollars b. Assume that the company expects to sell 25.000 units next month. Prepare two contribution format income c. This part of the question is not part of your Connect assignment. d. What is the point of Indifference between the two options? (Do not round Intermedlate calculatlons. Re nearest whole number.) The point of indirietence between the two options units

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

Step: 3

blur-text-image

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

Money, Markets And Capital The Case For A Monetary Analysis

Authors: Jean Cartelier

1st Edition

0815355777, 9780815355779

More Books

Students also viewed these Accounting questions