Due to erratic sales of its sole product -a high-capacty battery for laptop computers-PEM, incorporated, has been experiencing financial difficulfy for some time. The company's contribution format income statement for the most recent month is given below Required: 1. Compite the company's CM ratio and its break-even point in unit sales and dollar sales. 2 The president believes that a 56.600 increase in the monthly advertising budget, combined wath an intensified effort by the soles stat, wilt increase unit sales and the total sales by $84,000 per month. If the president is nght, what will be the increase (decrease) in the company's morithily net operating income? 3. Refer to the original data. The sales manager is convinced that a 10s redoction in the selling price, combined with an increase of 537,000 in the monthly advertising budget, will double unit sales. If the sales manager is right. what will be the revised net operating income (oss)? 4. Reles to the original cata. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow 4ales. The new package wowd increase packaging costs by $060 per unit. Assuming no other changes. how many units would have to be sold each month to attain a target profit of 54,400 ? 5. Refer to the onginal dati. By automating, the company could reduce variable expenses by $3 per unit However fuxed expenses would increase by $53.000 each manth B. Compute the new CM rato and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,900 units next month. Prepare fwo contribution formatiocome statements, one assuming that operations are not automated and one assuming that they are (Show data on a per unt and percentage basis, as weil as in tatal, for each altematret c. Would you recommend that the company automate its operations (Assuming that the company expecis to sell 20,900 unis)