Problem 6-22 CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO6-1, LO6-3, L06-4, LO6-5, LO6-6 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-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 (13,000 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 260,e00 130,000 130,000 145,900 $ (15,000)