Due to erractic sales of its sole product – a high-capacity for laptop computers – PEM Ltd has been experiencing

[ad_1]

Sales (19,500 units x (30)E585,000Less variable expenses409,500Contribution margin175,500Less fixed expenses180,000Net lossE(4,500)Required1 Compute the company’s CM ratio and its break-even point in both units and pounds.2 The president believes that a $16,000 increase in the monthly advertising budget, combined with anintensified effort by the sales staff, will result in an $80,000 increase in monthly sales. If the president isright, what will be the effect on the company’s monthly profit or loss? (Use the incremental approach inpreparing your answer.)3 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling pricecombined with an increase of $60,000 in the monthly advertising budget, will cause unit sales to double. What will the new profit and loss account look like if these changes are adopted?4Refer to the original data. The Marketing Department thinks that a fancy new package for the laptopcomputer battery would help sales. The new package would increase packaging costs by 75 pence perunit. Assuming no other changes, how many units would have to be sold each month to earn a profit ofE9,750?5 Refer to the original data. By automating certain operations, the company could reduce variable costs by$3 per unit. However, fixed costs would increase by $72,000 each month.(a) Compute the new CM ratio and the new break-even point in both units and pounds.(b) Assume that the company expects to sell 26,000 units next month. Prepare two profit and Idsaccounts, one assuming that operations are not automated and one assuming that they are. (Shopdata on a per unit and percentage basis, as well as in total, for each alternative.)(c) Would you recommend that the company automate its operations? Explain.

Don't use plagiarized sources. Get Your Custom Essay on
Due to erractic sales of its sole product – a high-capacity for laptop computers – PEM Ltd has been experiencing
Just from $13/Page
Order Essay

Show more



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA