Due to erratic sales of its sole product -a high-capacity battery for laptop computers Company, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below 13,200 units $20 per unit) Variable expenses Contribution margin Fixed expenses 264,000 158,400 105,600 117,600 Net operating loss (12,000) 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 $6,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an $85,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? 3 Refer to the onginal data e sales mana er s convinced that a 10% reduction in the selling pnce, combined with an increase of $36,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? 4. Refer to the original data. The Marketing Department battery would grow sales. The new package would increase packaging costs by 0.70 cents per unit Assuming no other changes, how many units would have to be sold each month to attain a target profit of $5,0002 thinks that a fancy new package for the laptop computer to the original data By automating, the company could reduce variable expenses by $3 per unit. However fixed expenses would increase by $53,000 each month a Compute the new CM ratio and the new break-even point in unit sales and dollar sales b. Assume that the company expects to sell 20,800 units next month. Prepare two contribution format income statements, one assuming that operations are not a and percentage basis, as well as in total, for each alternative.) c Would you recommend that the company automate its operations (Assuming that the coupany .expects to sell tomated and one assuming that they are. (Show data on a per unit 20,800)2