5-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6] Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (12,700 units $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $381,000 228,600 152,400 170,400 5 (18,000) his 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 20,400 units)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req SA Req 5B Req 5C The president believes that a $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $83,000 per month. If the president is right, what will be the Increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculations.) increases ling 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 20.400 units)? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 4 Req SA Req 58 Req 5C Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an Increase of $37,000 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) mont. 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 20.400 units)? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req SA Req 58 Req SC 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. 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 (.e., 0.234 should be entered as "23") and other answers to the nearest whole number.) Show less A CM ratio: Break-even point in unit sales Break even point in dollar sales 50 % de its operations (Assuming that the company expects to sell 20,400 units)? Complete this question by entering your answers in the tabs below. Req 1 Req 2. Req 3 Req 4 Req 5A Req 58 Req SC 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. 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.) (Do not round your intermediate calculations Round your percentage answers to the nearest whole number) PEM, Incorporated Contribution Income Statement Not Automated Total Automated Per Unit 86 Total Per Unit 0 $ 0 0 05 0 0 $ 0 $ 0 Show less A