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Chap006

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

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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

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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.

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