12:43 AM Tue Jul 27 63% 4 AA A ezto.mheducation.com + Ims.mhedu Le Ims.mheduc... LAIS LMS-UI LATS HTTP Status... Schedule O Sign In M Hill - Login LAS Ims.mheduc... x Question 3 -... mheduc Cour Week 3: Homework i Saved Help Save & Exit Submit Check my work 3 monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow points sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,100? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $59,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. ebook b. Assume that the company expects to sell 20,400 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) Print c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400)? In Complete this question by entering your answers in the tabs below. eferences Req 1 Req 2 Reg 3 Req 4 Req 5A Req 5B Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $59,000 each month. Assume that the company expects to sell 20,400 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Show less A PEM, Inc. Contribution Income Statement Not Automated Automated Total Per Unit % Total Per Unit % % % 1% % 0 $ 0 % 0 $ 0 % 0 $ $