Business
Business, 14.02.2020 03:25, lashaaungas

Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net operating loss $(4,500) By automating certain operations, the company could reduce variable costs by $3 per unit. However, fixed costs would increase by $72,000 each month. Compute the new CM ratio and the new break-even point in both units and dollars. Assume that the company expects to sell 26,000 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are.

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Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500...

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