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Question: Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty f…
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Question: Due to sales of its sole product a <a href=battery laptop computers Inc. has been periencing difficulty f…” />
Question: Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty f...
Question: Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty f...
Question: Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty f...

Show transcribed image text Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty for some time. The company's contribution format statement for the ex recent month is given below. Sales (12,600 units x $40 per unit) $504,000 Variable expenses 302,400 contribution margin 201,600 Fixed expenses 225,600 Net operating loss (24,000) Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollar sales CM ratio Break-even point in units Break-even point in dollars 2 The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $90,000 increase in monthly sales If the president is right, what will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer)

Due to sales of its sole product a battery laptop computers Inc. has been periencing difficulty for some time. The company's contribution format statement for the ex recent month is given below. Sales (12,600 units x $40 per unit) $504,000 Variable expenses 302,400 contribution margin 201,600 Fixed expenses 225,600 Net operating loss (24,000) Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollar sales CM ratio Break-even point in units Break-even point in dollars 2 The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $90,000 increase in monthly sales If the president is right, what will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer)

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