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Business, 14.02.2020 01:08 amandarenee4296
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 (12,800 units × $20 per unit) $ 256,000
Variable expenses 128,000
Contribution margin 128,000
Fixed expenses 143,000
Net operating loss $ (15,000 )
Compute the company's CM ratio and its break-even point in both units and dollars.
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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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