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2 The president believes that a $6,900 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in

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2 The president believes that a $6,900 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $86,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's eduction in the selling price, combined withan increase of in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating eting Department thinks that a fancy new package for the laptop computer battery would grow saies. Ine new package would increase packaging costs by 060 cents per unit. Assuming no other changes, how many units would al data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. monthly net operating income? 3 Refer to the original data. The sales manager is convinced that a 10% r income (loss)? sales. The new package would increase packa have to be sold each month to attain a target profit of $4,700? would increase by $51,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. 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) cWould you recommend that the company automate its operations (Assuming that the company expects to sell 20,400)? References Complete this question by entering your answers in the tabs below Req 2 Req 1 Req SA Req 3 Req 4 Req 5B Req 5C expenses by $3 per unit.H e the new CM ratio and the new break-even point in unit sales and data. By by $51,000 each CM ratio

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