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 Sale (1,950 units x $ 30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss Required a. Compute the company's break-even point in both units and dollar. b. The president believes that a $ 1,600 increase in the monthly advertising budget, $ 58,500 17,550 combined with an intensified effort by the sales staff, will result in a $ 9,000 increase in monthly sales. If the president is right, what will be the effect on the company's monthly net operating income or loss? c. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of S 6,000 in the monthly advertising budget, will cause unit sales to double. What will the new contribution format income statement look like if these changes are adopted? Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $ 1 per unit. Assuming no other changes, how many units would have d. to be sold each month to earn a profit of $ 6,000? Refer to the original data. By automating certain operations, the company could reduce variable costs by $ 3 per unit. However, fixed costs would increase by $ 7,200 each month. The company expects to sell 2,600 units next month. Would you recommend that the company automate its operations