Question: This window shows what is correct and incorrect for the work you have completed so far. Even if a...Question: This window shows what is correct and incorrect for the work you have completed so far. Even if a...Question: This window shows what is correct and incorrect for the work you have completed so far. Even if a...

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Show transcribed image text This window shows what is correct and incorrect for the work you have completed so far. Even if all of the work you have done so far is correct, you may not have completed everything. value: 3.33 points Due to erratic sales of its sole product a high-capacity battery for laptop computers-PEM, Inc., has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: 532,000 Sales (13,300 units x $40 per unit) 319,200 Variable expenses 212,800 Contribution margin 236,800 Fixed expenses $(24,000) Net operating loss Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollar sales Answer is complete but not entirely correct CM ratio 30X 600,000X Break-even point in units Break-even point in 20,000X 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 $86,000 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.)

This window shows what is correct and incorrect for the work you have completed so far. Even if all of the work you have done so far is correct, you may not have completed everything. value: 3.33 points Due to erratic sales of its sole product a high-capacity battery for laptop computers-PEM, Inc., has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: 532,000 Sales (13,300 units x $40 per unit) 319,200 Variable expenses 212,800 Contribution margin 236,800 Fixed expenses $(24,000) Net operating loss Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollar sales Answer is complete but not entirely correct CM ratio 30X 600,000X Break-even point in units Break-even point in 20,000X 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 $86,000 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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