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Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $95 per unit, and variable expenses are $65 per unit. Fixed expenses are $835,200 per year. The present annual sales volume (at the $95 selling price) is 25,300 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? Maximum profit Number of units Selling price Required 1 Required 2 Required 3 Required 4 What would be the break-even point in unit sales and in dollar sales using the selling price you determined in Required (3) (e.g., the selling price at the level of maximum profits)? (Do not round intermediate calculations.) Break-even point in units Break-even point in dollar sales Due to erratic sales of its sole product-a high-capacity battery for laptop computersPEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: $ Sales (13,300 units X $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 399,000 239, 400 159, 600 177, 600 (18,000) $ Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 2 Reg 3 Req3 Reg 4 Req 4 Req 5A Req 5A Reg 5B Req 58 Reg 50 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $40,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Revised net operating income (loss) Req 1 Reg 2 Reg 3 Reg 4 Reg 5A Req 5B Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $60,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should be entered as "23") and other answers to the nearest whole number.) Show less CM ratio Break-even point in unit sales Break-even point in dollar sales Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Req 5B Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $60,000 each month. 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 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 PEM, Inc. Contribution Income Statement Not Automated Total Per Unit % Automated Per Unit Total % Sales Variable expenses Contribution margin Fixed expenses Net operating income 0 $ 0 0 $ 0 $ 0 $ 0