DATA: Selling price per unit = $20 Variable Expenses per unit = Old Variable expenses...
60.1K
Verified Solution
Link Copied!
Question
Accounting
DATA:
Selling price per unit = $20 Variable Expenses per unit = Old Variable expenses reduced price Variable Expenses per unit = $10 - $3 Variable Expenses per unit = $7
Contribution Margin = Selling Price Variable Expenses Contribution Margin per unit = $20 - $7 Contribution Margin per unit = $13
what is %
Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed e by $52,000 each month. Assume that the company expects to sell 20,200 units next month. Prepare two contribution fo statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per uni as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers number.) PEM, Inc. Contribution Income Statement Not Automated Automated Total Per Unit Total Per Unit $404,000 202,000 202,000$ 145,000 $57,000 Sales 20 10 10 % $ 404,000 $ 20 ariable expenses Contribution margin Fixed expenses Net operating income 141,400 262,600 $ 197,000 65,600 01% 13 01%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
