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: Total Sales (19,500 units * $30 per unit) $585,000 Variable Costs 409,500 Contribution Margin 175,500 Fixed Costs 180,000 Net Operating Loss $(4,500) Required 1. Compute the company's Contribution Margin Ratio. 2. Compute the company's Break-Even Point in Units and Dollar Sales. For each separate scenario below begin your analysis with the original data 3. Scenario 1 - 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 this is correct, what will be the increase or decrease in the company's monthly net operating income? 4. Scenario 2 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 or loss? - 5. Scenario 3 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 charges, how many units would have to be sold each month to attain a target profit of $9,750.