5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $58,000 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 20,300 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.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300)? Complete this question by entering your answers in the tabs below Req 2 Req 3 Req 4 Req SA 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 $58,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Round "CM ratio" to the nearest whole percent and other answers to the nearest whole number.) CM ratio K Req 4 Req 5B Prev2 of 2 Next> Due to erratic sales of its sole product-a high-capacity battery for difficulty for some time. The company's contribution format income Sales (13,300 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $266,000 159,600 106,400 118,40e $(12,900) Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 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, f by $58,000 each month. Assume that the company expects to sell 20,300 units next month. Prepare two contribu statements, one assuming that operations are not automated and one assuming that they are. (Show data on a p as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage ans number.) PEM, Inc. Contribution Income Statement Not Automated Per Unit Automated Per Unit Total Total 01% 0 0 0 0 K Req 5A Req 5C