Due to erratic sales of its sole product a high$-$capacity battery for laptop computers$-$PEM. Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below:

Sales $(19,500$ units x $$30$ per unit$)$

$$585,000$

$409,500$

Variable expenses.

Contribution margin

Fixed expenses

$175,500$

Net operating loss.

$180,000$

$ $(4,500)$

Required:

$1.$ Compute the company's CM ratio and its break$-$even point in unit sales and dollar sales.

$2.$ The president believes that a $$16,000$ increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $$80,000$ per month. If the president is right, what will be the increase $($decrease$)$ in the com pany's monthly net operating income?

$3.$ Refer to the original data. The sales manager is convinced that a $10\%$ reduction in the selling price, combined with an increase of $$60,000$ in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income $($loss$)?$

Refer to the original data. The Marketing Department thinks that a fancy, new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $75$ cents per unit. Assuming no other changes, how many umts would have to be sold.cach month to attain a target profit of $$9\mathrm{.}7507$