Gudas Corp. produces memory
enhancement kits for DVR machines. Sales have been very
erratic, with some months showing a loss. The company's
contribution format income statement for the most recent month is
given below:
Sales (20,000 units at $15 per unit)
$300,000
Variable expenses
200,000
Contribution margin
(CM)
100,000
Fixed
expenses
150,000
Net operating
loss
$ (50,000)
Required:
Gudas Corp. produces memory enhancement kits for DVR machines. Sales have been very erratic, with some months showing a
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