|Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing difficulty for some time. The company’s contribution format income statement for the most recent month is given below:|
|Sales (13,000 units × $40 per unit)||$||520,000|
|Net operating loss||$||(30,000)|
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Question & Answer: to erratic sales of its sole product—a high-capacity battery…..
|Sales (13,000 units × $40 per unit)||520,000.00||816,000.00|
|Variable expenses (50%)||260,000.00||408,000.00|
|Net operating lncome||(30,000.00)||118,000.00|