Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below 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, will increase unit sales and the total sales by $80,000 per month 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. The sales manager is convinced that o %% 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 (loss)? 4. 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 75 cents per unit Assuming no other changes, how many units would have to be sold each month to attain atarget profi ol 59,750 ? 5 Refer to the original data By automating, the company couldreduce vanable expenses by $3 per unit However, fixed expenses would increose by $72,000 each month. a Compute the new CM ratio and the new treak-even paint io unit sales and dollar sales b. Assume that the company expects to sall 26.000 units next month Pigpare two confribution format income statements one assuming that operations are not dutomated and one ascuming that they are (Show data an oper unit and percentage bass, as well as in total, for each alteinative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 26,000 units)