Due to erratic sales of its sole product - a high capacity battery for laptop computers - PEM has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (27,000 units at $20 per unit) Less: Variable costs Contribution margin Less: Fixed costs Net operating loss $540,000 $378.000 $162,000 $180,000 $(18,000) The company's advertising agency thinks a new package would help sales. The new package being proposed would increase packaging costs by $1.00 per unit. Assuming no other changes, how many units would have to be sold each month to earn a net operating income of $25,000? Ques 1 Part a) The company's advertising agency thinks a new package would help sales. The new package being proposed would increase packaging costs by $1.00 per unit. Assuming no other changes, how many units would have to be sold each month to earn a net operating income of $25,000? Part b) Assume that the company automates and variable costs decrease by $3.00 per unit and fixed costs increase by $60,000 per month. What would the net operating income be if 35,000 units are produced and sold next month