Chap006 - Student Name: Class: Problem 6-19 PEM, INC. 1....

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Unformatted text preview: Student Name: Class: Problem 6-19 PEM, INC. 1. Contribution margin ratio: Percent Total Per Unit of Sales Sales Less variable expenses Contribution margin Break-even point: Sales Variable expense Fixed expense Profits Break-even point (units) Break-even point (dollars) Alternative break-even point calculation: Break-even point (units) Break-even point (dollars) 2. Incremental contribution margin: Increased sales Less increase advertising cost Increase in monthly net income Current loss per month Add increase Total income per month 3. Sales Less variable expenses Contribution margin Less fixed expenses Net loss 4. Units sold to reach target profit: Sales Variable expenses Fixed expenses Profits Number of units Alternative calculation: Number of units 5a. Contribution margin ratio: Percent Per Unit of Sales Sales Student Name: Class: Problem 6-19 Less variable expenses Contribution margin Break-even point: Fixed expense Unit contribution margin Break-even point in unit sales Contribution margin ratio Break-even point in sales dollars 5b. Comparative income statements: Not Automated Automated Total Per Unit % Total Per Unit % Sales Less variable expenses Contribution margin Less fixed expenses Net income Given Data P06-19: PEM, INC. Information from recent month's income statement: Sales $585,000 Units sold 19,500 Sales price per unit $30 Less variable expenses 409,500 Contribution margin 175,500 Less fixed expenses 180,000 Net operating loss...
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This note was uploaded on 02/27/2010 for the course FIN 311 taught by Professor Haan during the Spring '10 term at St. Josephs NY.

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Chap006 - Student Name: Class: Problem 6-19 PEM, INC. 1....

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