I really need help with this one too. Thank you!!!!!!!!!!! Te XBlackboard: Student Login - Te XO Question 9 - Chapter 5B Home Xb Success Confirmation of Quest XC Due To Erratic Sales Of Its Soleducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportalmework Problems iSavedSales (12,800 units x $30 per unit)Variable expensesContribution marginFixed expenses$ 384,000230,400153,600171,600$ (18,000)Net operating lossRequired:1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales.2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the salesstaff, will increase unit sales and the total sales by $80,000 per month. If the president is right, what will be the increase (decrease) inthe 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$32,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operatingincome (loss)?4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would growsales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would haveto be sold each month to attain a target profit of $4,300?5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenseswould increase by $58,000 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 20,600 units next month. Prepare two contribution format income statements, oneassuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, aswell as in total, for each alternative.)c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,600 units)?Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4Req 5AReq 5BReq 5CRefer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixedexpenses would increase by $58,000 each month. Would you recommend that the company automate its operations(Assuming that the company expects to sell 20,600 units)?YesONo< Req 5BReq 5C >< Prev9 of 10Next >

Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Sales (12, 800 units × $30 per unit) Variable expenses Contribution margin Fixed expenses $ 384,000 230,400 153,600 171,600 $ (18,000) Net operating loss 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 $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $80,000 per month. 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 $32,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

Sales (12, 800 units × $30 per unit) Variable expenses Contribution margin Fixed expenses $ 384,000 230,400 153,600 171,600 $ (18,000) Net operating loss 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 $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $80,000 per month. 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 $32,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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