Due to erratic sales of it's sole product-a high capacity battery for laptops computers-PEM, Inc. has been experiencing financial difficulty for some time.

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: Sales (19,500 units x $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 585,00e 409,500 175,500 180,000 $ (4,500) 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 $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, wi monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling pri ill result in an $80,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's ce, com bined with an increase of thly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating would grow income (loss)? 4. Refer to the original data. sales. The new package would increase packagin have to be sold each month to attain a target profit of $9,750? The Marketing Department thinks that a fancy new package for the laptop computer battery g costs by 75 cents per unit. Assuming no other changes, how many units would