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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

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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 beiow: Required: 1. Compute the company's CM rato and its break-even point in unit sales and doliat sales 2. The president believes that a $6.800 increase to the monthly advertising budget, combined with an intensified effort by the sales. stoth, wall increase unit sales and the total soles by $84,000 per month if the president is right, what will be the incresse (decrease) in the company s monthly net operating income? 3. Refer to the originat dato. The sales manager is convinced that 010% reduction in the selling price, combined with an increase of 533000 in the momhly advertisang budget, vili double unit sales if the sales manager is hight, what will be the revised net operating thcome (joss)? 4. Refer to the onginal cato The Marketing Department thinks that a fegncy new package for the laptop computer battery would grow soles. The new package would inctease packoging costs by 5070 per untit Assuming no other changes now many unts wald hove to be sold each month to ortain o tardet protit of 54300 ? 5. Refer to the oriqinbt dota Ey outomang. the compaiy cobld leduce varioble expenses by $3 per unit: However, fixed expenses Wouidncicose by 559.000 ect month Wi Compute the nex CM atto and the new byeak even point in unit sales and aolar sales b. Assume not the compony expects to bell 20300 units next month Prepore two sontroution format income statements one Assuening that opetations aro got putomated and one ossuminid thet they are (Show dato on a per unit and percentage bosis, as Welis in total for pact alterimetivel c Woud vou hecemmend that the company ousomate its opeiations (Assamino that the company expects to sell 20300 unis)

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