Business, 20.09.2019 23:10 kaitlyn215

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 (13,000 units × $20 per unit)$260,000 variable expenses 156,000 contribution margin 104,000 fixed expenses 116,000 net operating loss$(12,000) 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 $7,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $86,000 increase in monthly sales. if the president is right, what will be the increase (decrease) in the company’s monthly net operating income?

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Due to erratic sales of its sole product—a high-capacity battery for laptop computers—pem, inc., has...

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