Due to erratic sales of its sole product ? a high-capacity battery for laptop computers-PEM, Inc., has been experiencing difficulty for some time. The company?s contribution format income statement for the most recent month is given below. Requirement 1: Compute the company?s CM ratio and its break-even point in both units and dollars. (Omit the ?%? and ?$? signs in your response.) Requirement 2: The president believes that a $7,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $68,000 increase in monthly sales. If the president is right, by how much will the company?s net operating income increase or decrease? (Use the incremental approach in preparing your answer.) (Negative amount should be indicated by a minus sign. Omit the ?$? sign in your response.)