Due to erratic sales of its sole producta high$-$capacity battery for laptop computersPEM, Incorporated, has been experiencing financial difficulty for some time. The companys contribution format income statement for the most recent month is given below:Sales $(12,700$ units $\backslash$times $$30$ per unit$)$$ $381,000$Variable expenses$190,500$Contribution margin$190,500$Fixed expenses$213,000$Net operating loss$ $(22,500)$Required:Compute the companys CM ratio and its break$-$even point in unit sales and dollar sales.The president believes that a $$6,900$ increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $$90,000$ per month. If the president is right, what will be the increase $($decrease$)$ in the companys monthly net operating income?Refer to the original data. The sales manager is convinced that a $10\%$ reduction in the selling price, combined with an increase of $$31,000$ in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income $($loss$)?$Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $$0\mathrm{.}40$ per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $$4,500?$Refer to the original data. By automating, the company could reduce variable expenses by $$3$ per unit. However, fixed expenses would increase by $$59,000$ each month.Compute the new CM ratio and the new break$-$even point in unit sales and dollar sales.Assume that the company expects to sell $20,600$ units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. $($Show data on a per unit and percentage basis, as well as in total, for each alternative.$)$Would you recommend that the company automate its operations $($Assuming that the company expects to sell $20,600$ units$)?$