3 Due to erratic sales of its sole product-a high-capacity battery for laptop computers.PEM, Inc. has been experiencing financial difficuity for some time. The company's contribution format income statement for the most recent month is given below. 20 points $ 262,000 Sales (13,100 units $2e per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 146, $ (15,000) Required: 1. Compute the company's CM ratio and its broakoven point in unit sales and dollar sales 2 The president believes that a $6,000 increase in the monthly advertising budget combined with an intensified effort by the sales staff will result in an $81.000 Increase in monthly Cales. If the president is night, what will be the increase decrease in the company's 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 $36,000 in the monthly advertising budget, will double unit sales of the sales manager is night, what will be the revised net operating income foss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 50 60 per unit Assuming no other changes, how many units would have to be sold each month to attain a target profit of $5,000? 5. Refer to the original data By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51.000 each month a. Compute the new CM ratio and the new break-oven point in unit Sales and dollar sales b. Assume that the company expects to sell 20,800 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 por unit and percentage basis, as well as In total, for each alternative c. Would you recommend that the company automate its operations Assuming that the company expects to sell 20.800)? Answer is not complete. Complete this question by entering your answers in the tabs below. Rea Ree Reg SA Refer to the original data. By automating the company could reduce variable expenses by 33 per unit. Howeves fired expenses would increase by $51.000 each month Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not found intermediate calculations. Round 'CM ratio to the nearesto percentage 0.234 should be entered as 23") and other answers to the nearest whole number) Show less CM ratio Brever point in sales Brear-wpoint in dollars 608 15.472 S604 1673