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 (12,900 units x $20 per unit) $ 258,000
Variable expenses 129,000
Contribution margin 129,000
Fixed expenses 144,000
Net operating loss $ (15,000)
Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $36,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?
Solved
Show answers
More tips
- L Leisure and Entertainment What can be considered an antique: defining and valuing old objects...
- F Family and Home What Kind of Wedding to have After 11 Years of Marriage?...
- C Computers and Internet How to Top Up Your Skype Account Without Losing Money?...
- P Philosophy Unidentified Flying Object - What is the Nature of this Phenomenon?...
- F Family and Home Protect Your Home or Apartment from Pesky Ants...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
Answers on questions: Business
- H Health Cant pass till i have which of the following statements is not true? a) consuming high sugar food right before exercising will give the body a boost of energy for your workout...
- H History What is normally the third contact of the ball when it comes over the net?...
- G Geography The world s largest consumer of energy resources is now: question 11 options: the united states india china russia...
Ответ:
the revised net operating income is $ 26,400
Explanation:
Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.
Revised Income Statement
Sales( (12,900 units x 2)× ($20 per unit×0.90)) $ 464,400
Variable expenses ( $10× (12,900 units x 2)) ($ 258,000)
Contribution margin $206,400
Fixed expenses (144,000 + $36,000 ) ($180,000)
Net operating loss $ 26,400
Ответ:
hope it's correct.
Explanation:
I only know Cornelius Vanderbilt and Jay Gould.