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Due to erratic sales of its sole product-a high-capacity battery for laptop computers,PEM, Inc., has been experiencing financ

Reg 1 Reg 2 Req3 Req 4 Req 5A Req 5B Req 5C Compute the companys CM ratio and its break-even point in unit sales and dollar

Req 1 Reg 2 Reg 3 Req 4 Req 5A Req 5B Req 5C The president believes that a $6,200 increase in the monthly advertising budget,

Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increa

Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would gr

Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses

Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses

Req 1 Reg 2 Reg 3 Req 4 Req 5A Req 5B Req 5C Refer to the original data. By automating, the company could reduce variable exp

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Answer #1

1) CM ratio = 157200/393000 = 40%

Break even unit = 175200/12 = 14600 Units

Break even sales = 14600*30 = $438000

2) Net operating income increase by (89000*40%)-6200 = 29400

3) Revised net operating income (loss)

Total Per unit
Sales (26200*27) 707400 27
Variable cost 471600 18
Contribution margin 235800 9
Fixed cost 213200
Net income (loss) 22600

4) Required unit = (175200+4900)/(30-18.60) = 15798 Units

Note: Pls post whole que in the group of 4-4 sub parts

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