ZuoTi.Pro
Question

CM and CM ratio

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing difficulty for some time. Thecompany's contribution format income statement for the most recent month is given below:

Sales (12,600 units at $30 per unit)$378,000
Variable expenses

264,600

Contribution margin113,400
Fixed expenses126,900
Net operating loss

$(13,500)

Requirement 1:

Compute the company's CM ratio and its break-even point in both units and dollars. (Omit the "%" and "$" signs in yourresponse.)

CM ratio%
Break-even point in unitsunits
Break-even point in dollars$
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
CM and CM ratio
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

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

    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: Sales (13,300 units x 40 per nit) $532,000 Variable expenses 319,200 Contribution margin Fixed expenses 212,800 236,800 Net operating loss S (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...

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

    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: Sales (12,600 units × $40 per unit) $ 504,000 Variable expenses 252,000 Contribution margin 252,000 Fixed expenses 282,000 Net operating loss $ (30,000) Required: 1. Compute the company’s CM ratio and its break-even point in both unit sales and dollar sales.   2. The president believes...

  • Problem 2-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO2-1, LO2-3, LO2-4, LO2-5,...

    Problem 2-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO2-1, LO2-3, LO2-4, LO2-5, LO2-6] Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:    Sales (12,700 units × $20 per unit) $ 254,000 Variable expenses 127,000 Contribution margin 127,000 Fixed expenses 142,000 Net operating loss $ (15,000 ) 5. Refer...

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

    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: Sales (12,700 units < $40 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 508,000 254,000 254,000 284,000 (30,000) 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...

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

    Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (13,200 units × $30 per unit) $ 396,000 Variable expenses 237,600 Contribution margin 158,400 Fixed expenses 176,400 Net operating loss $ (18,000 ) 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed...

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

    Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc, has been difficulty for some time. The company's contribution format income statement experiencing for the most recent month is given below financial Sales (13,1ee units $2e per$262,eee unit) Variable expenses Contribution margin Fixed expenses Net operating loss 131,800 131,88 146,800 s(15,ee0)

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

    Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (12,600 units × $30 per unit) $ 378,000 Variable expenses 226,800 Contribution margin 151,200 Fixed expenses 169,200 Net operating loss $ (18,000 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president...

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

    Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (12,600 units X $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 378,000 226,800 151,200 169,200 $ (18,000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes...

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

    Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below Sales (12,600 units × $30 per unit) $ 378,000 Variable expenses 189,000 Contribution margin 189,000 Fixed expenses 211,500 Net operating loss $ (22,500 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president...

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

    Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:    Sales (13,100 units × $20 per unit) $ 262,000 Variable expenses 131,000 Contribution margin 131,000 Fixed expenses 146,000 Net operating loss $ (15,000 ) Required: 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT