5. Refer to the orlginal data. By automating, the company could reduce variable expenses by $3 per unHwever, fxed 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. b. Assume that the company expects to sell 20,200 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 20,200) Complete this question by entering your answers in the tabs below. Req S8 Req SC Req 1 Req 2 Reg 3 Req 4 Req SA 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. 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 (Le, 0.234 should be entered as "23) and other answers to the nearest whole number.) Show less a CM rabo 65 Break even point in unit sales Break even point in dollar sales earch DELL F1 F2 F3 E10 F4 FS F6 F7 F11 FB F9 F12 # % & 2 5 7 Q W E R T Y U S D F K N tA4 m nment Due to erratic sales of its sole product--a high-capacity battery difficulty for some time. The company's contribution format inc Sales (13,000 units Variable expenses $20 per unit) $ 260, 000 130, 0 130,000 145,000 Contribution margin Fixed expenses Net operating loss $ (15,000) Required: 1. Compute the company's CM ratio and its break-even point in 2 The nrecident bholiovor that cn