Gold Star Rice, Ltd. of Thailand exports That rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzatn Budgeted sales by product and in total for the coming month are shown below White Percentage of total sales Sales Variable expelyses Contribution margin Fised expenses Net operating in con $ 321,600 96,480 $225,120 100% sex zex Product Fragrant Loonzain 23 32% $ 134,ce 100% $ 214,400 100% 102,200 sex 117,920 555 $ 26,500 5 96,450 Total 100% $ 670,000 321,600 345,400 232,440 $ 115,960 100% 43 52% Fixed expenses $232,440 dollar sales to break even Ot ratio 0.52 As thown by these data, net operating income is budgeted at $115.960 for the month and the estimated break-even sales is $447.000. Asume mat actual tales for the month total 5670,000 as planned Actual sales by product are: White $214,400, Fragrant, $268.000, and Loontain, $187.600. Required: Prepare a contribution format income statement for the month based on the actual sales data 2. Computer the break-even point in dollar tales for the month based on your actual data Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Conton income tamen Whe Fragran Loo Tocal os 0 0 Gold Star Rice, Ltd., of Thailand exports Thalnice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzan. Budgeted sales by product and in total for the coming month are shown below White 49% $ 321,600 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses het operating income Product Fragrant 202 $ 134,000 100% 107,200 ses $ 26,800 20% 1005 30% 70% Iee Loonzain 32% $ 214,400 100% 117,92 552 $ 96,450 $ 225,120 Total 100% $ 670, cee 321,600 345,400 232,440 $ 115,960 52% Dollar sales to break even Fixed expenses Otratio 0.52 5447,00 As shown by these data, net operating income is budgeted at $115.960 for the month and the estimated break-even sales is $447,000 Assume that actual sales to the month total $870.000 as planned. Actual sales by product are White, $254,400; Fragrant. $268,000, and Loonzain $187500 Required: Prepare a contribution format income statement for the month based on the actual sales data 2. Compute the break even point in dollar sales for the month based on your actual data Complete this question by entering your answers in the tabs below. Hured Compute the break even point in dolar sales for the month based on your actual data (Round your answer to the nearest 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 (13,1ee units $2e per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 262,00 131,000 131,000 146,eee $ (15,000) 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 $6.400 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease in the company's monthly net operating income? 3. Reter 10 the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $34.000 in the monthly advertising budget, wil double unit sales of the sales manager is right what will be the revised net operating Income (los)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have 5. Refer to the original data By automating the company could reduce variable expenses by S3 per unit. However, fixed expenses would increase by $55.000 each month a Compute the new CM ratio and the new break-even point in unit cales and dollar sales b. Assume that the company expects to sell 20.700 units next month. Prepare two contribution format income statements, one astuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative) 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 (13,100 units * $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 262,000 131,600 131,000 146,000 $ (15,eee) Required: 1. Compute the company's CM satio and its break-even point in unit sales and dollar sales. 2. The president belleves that a $6.400 increase in the monthly advertising budget combined with an intensified effort by the sales staff will result in an $88,000 increase in monthly sales. 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 $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income loss? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow cales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have 5. Refer to the original data. By automating, the company could reduce variable expenses by S3 per unit. However, fixed expenses would increase by $55,000 each month * Compute the new CM ratio and the new break-even point in unt sales and dollar sales b. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are (Show data 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 (Assuming that the company expects to sell 20.700)? Complete this question by entering your answers in the tabs below. Reqa Reg 4 Reg 5 Reg 58 Reg 5C Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,6007 (Do not round intermediate calculations. Round final wer to the nearest whole unit.) Show less 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 (13,108 units * $20 per unit) variable expenses Contribution margin Fixed expenses Net operating loss $ 262,eee 131,eee 131,00 146,eee $ (15,eee) 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 $6,400 increase in the monthly advertising budget combined with an intensified effort by the sales staff, will result in an $88,000 increase in monthly sales. 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 $34.000 in the monthly advertising budget will double unit sales. If the sales manager is right, what will be the revised net operating Income foss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unnt. Assuming no other changes, how many units would have 5. Refer to the original data. By automating, the company could reduce variable expenses by S3 per unit. However, fixed expenses would increase by $55,000 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 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data 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 (Assuming that the company expects to sell 20,700)? Complete this question by entering your answers in the tabs below. Reg 2 Reg 3 Reg 4 Reg SA Reg 5 Ra SC Refer to the onginal data. By automating, the company could reduce vanable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round CM ratio to the nearest whole percentage (ie, 0.234 should be entered as "23) and other answers to the nearest whole number) Show less CM Deed even points 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 $6,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $88,000 Increase in monthly sales. If the president is right, what will be the increase (decrease) in the company 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 $34.000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income (loss)? 2. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,500? 5 Refer to the original data. By automating the company could reduce variable expenses by S3 per unit. However, fixed expenses would increase by $55.000 each month. a. Compute the new CM ratlo and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20.700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative) t Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.700)? mes Complete this question by entering your answers in the tabs below. Ren1 Raq 2 Reg 3 Reg4 Reg SA Rea sa Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number Show less PEM, Inc. Contribution Income Statement Not Automated Total Per Unit Total Automated Per Unit 1363 ols 0 0 % 05 0 % 0 $ 0 LUELI LUULLOT Mga Fixed expenses Net operating loss 131, 146,eee $ (15,000) Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2. The president belleves that a $6,400 increase in the monthly advertising budget combined with an intensified effort by the sale staft, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the compar monthly net operating Income? 2. Refer to the orginal data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $34,000 in the monthly advertising budget. Will double unlt sales. If the sales manager is right, what will be the revised net operatin income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grov sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55.000 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 20.700 units next month. Prepare two contribution format Income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well c Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700)2 Complete this question by entering your answers in the tabs below. Rag Rog 2 Rega Reg 4 Reg SA Red Rag 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700)? Yes No (Reg 58