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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 $6,100 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $85.000 Increase in monthly sales. 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 increase of $34,000 in the monthly advertising budget, will double unit sales. If the sales manager 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 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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 20,300 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.) C. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.30017 Complete this question by entering your answers in the tabs below. 24 Reg 5A Reg 58 Req 5C 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 60 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,6007 (Do not round Intermediate calculations. Round final answer to the nearest whole unit.) Show less Unit sales to attain target profit Hy verwany wuuyen, L ICU CHEMY sual, will result in an $85,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the com 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 increas $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net oper income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would sales. The new package would increase packaging costs by 0.60 cents per unit. Assuming no other changes, how many units w have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expens would increase by $52,000 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 20,300 units next month. Prepare two contribution format income statements, one ssuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Reg 3 Reg 4 ReqSA Req 5B Req 50 Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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 "EM ratio" to the nearest whole percentage (.e., 0.234 should be entered as "23") and other answers to the nearest whole number) Show less CM ratio Break-even point in unit sales Break-even point in dollar sales Reg 5 Reg4 1111111 Arommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Reg 58 Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 each month. Assume that the company expects to sell 20,300 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.) Show less PEMIne Contribution Income Statement Not Automated Total Per Unit Automated P er Unit Total yho OUL CHulyos, HUWHY V W JE SUI each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed e would increase by $52,000 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 20,300 units next month. Prepare two contribution format income statements, assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bas as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Yes ONO Hy verwany wuuyen, L ICU CHEMY sual, will result in an $85,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the com 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 increas $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net oper income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would sales. The new package would increase packaging costs by 0.60 cents per unit. Assuming no other changes, how many units w have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expens would increase by $52,000 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 20,300 units next month. Prepare two contribution format income statements, one ssuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Reg 3 Reg 4 ReqSA Req 5B Req 50 Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 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 "EM ratio" to the nearest whole percentage (.e., 0.234 should be entered as "23") and other answers to the nearest whole number) Show less CM ratio Break-even point in unit sales Break-even point in dollar sales Reg 5 Reg4 1111111 Arommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Reg 58 Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 each month. Assume that the company expects to sell 20,300 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.) Show less PEMIne Contribution Income Statement Not Automated Total Per Unit Automated P er Unit Total yho OUL CHulyos, HUWHY V W JE SUI each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed e would increase by $52,000 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 20,300 units next month. Prepare two contribution format income statements, assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bas as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Yes ONO

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