Question: please answer it correctly i need it asap Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing






Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution frimat income statement for the most recent month is given below: 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 $6,800 increose in the monthly odvertising budget, combined with an intensified effort by the sales staff, will increase unit sales 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? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increose of $32,000 in the monthly advertising budget, will double unit sales. If the sales managet 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 per unit. Assuming no other changes, how many units would have to be sold eoch month to attain o target profit of $4,500 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. Howevec, fixed expenses would increase by $54,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and doliar sales. b. Assume that the company expects to sell 20,700 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 altemative.) c. Would you recommend that the company outomate its operations (Assuming that the company expects to sell 20.700 units)? c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,100 units Complete this question by entering your answers in the tabs below. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 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 (i.e., 0.234 should be entered as "23"), round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in doliar sales" to the nearest whole dollar:) Complete this question by entering your answers in the tabs below. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expeises would increase by $54,000 each month. Assume that the company expects to sell 20,700 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.) sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other chances hnw mantimery would grow to be sold each month to attain a target profit of $4.500 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fued expentes would increase by $54,000 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 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not outomated and one assuming that they are. (Show data on a per unit and percentoge basis, as well as in total, for each altemative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700 units)? Complete this question by entering your answers in the tabs below. The president believes that a $6,800 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. If the president is riaht, what will be the increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculations.) 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battecy would grow sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other changes, how mony units would have to be sold each month to attain a target profit of $4,500 ? 5. Refer to the original data. By automating. the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and doliar sales. b. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. IShow data on a per unit and percentoge basis, as well as in total, for each altemative) c. Would you recommend that the company automate its operations (Assuming that the compony expects to sell 20,700 unitu?) Complete this question by entering your answers in the tabs below. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $32,000 in the monthly advertising budget, will double unit sales. If the sales mansger is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) 5. Refer to the original data. By automating, the company could reduce variable expenses by $33 per unit However, fixed expenses would increase by $54,000 each month. a. Compute the new CM ratio and the new breakeven point in unit sales and dollat sales b. Assume that the company expects to sell 20,700 units next month. Preporo 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 aitemative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700 units)? Complete this question by entering your answers in the tabs below. 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 50,60 per unit. Assuming no other changes, how many units would have to be sold each month to attaln a taroot profit of $4,500 (Do not round intermediate calculations. Fiaund fina in answer up to the nearest whole unit.) 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 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,500 ? 5. Refer to the original data. By automating. the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54.000 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 20,700 units next month. Prepare two contribution format income statements, ane assuming that operations are not automated and one assuming that they are. (Show doto on a per unit and percentoge basis, os well as in total, for each alternative.) c. Would you recommend that the company automote its operations (Assuming that the company expects to sell 20,700 units)? Complete this question by entering your answers in the tabs below. 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")
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