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Please Help! Contribution Format Income Statement

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing difficulty for some time. Thecompany's contribution format income statement for the most recent month is given below:

Sales (12,600 units at $30 per unit)$378,000
Variable expenses

264,600

Contribution margin113,400
Fixed expenses126,900
Net operating loss

$(13,500)



Assume that the company expects to sell 20,500 units next month. Prepare two contribution format income statements, one assuming that operations arenot automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for eachalternative.) (Input all amounts as positive values. Round your per unit cost to 1 decimal place and all other answers to thenearest dollar, percentage values. Omit the "$" and "%" signs in your response.)

Not AutomatedAutomated
TotalPer Unit%TotalPer Unit%
Sales (20,500 units)$$$$
Variable expenses

Contribution margin

$

$

Fixed expenses
Net operating income

$

$

0 0
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