Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been expetiencing 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 $6,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the increase (decreasel in the company's monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling ptice, combined with an increase of $30,000 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 battecy would grow sales. The new package would increase packaging costs by $070 per unit. Assuming no other changes, how many units would have to be soid each month to attain a target prof 1 of $4,600 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. Hawever, fiwed expenses would increase by $59,000 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 20.000 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 baus. ias well as in total, for each alternative) to be sold each month to attain a target profit of $4,600 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. Howevet, fixed expenses would increase by $59,000 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 20,000 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) c. Would you recommend that the company automate its operations (Assuming that the company expects to seli 20.000 units)? Complete this question by entering your answers in the tabs below. Compute the company's Lim ratio and its break-even point in unit sales and doltar sales. (Do not round intermediatin calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.2.34 should be entered as "23"). to be sold each month to attain a target profit of $4,600 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenser would increase by $59,000 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 20,000 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.) c. Would you recommend that the company automate its operations (Assuming that the company expects to seli 20,000 unis)? Complete this question by entering your answers in the tabs below. The president belleves that a 56,400 increase in the monthly advertising budget, combined with an intensifled effort by the sales staff, will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the Increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculatione) b. Assume that the company expects to sell 20,000 units next month. Prepare two contribution format income statements, on assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,000 unit Complete this question by entering your answers in the tabs below. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $30,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) 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 20,000 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.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.000 units)? Complete this question by entering your answers in the tabs below. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery wowld grow sales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many unit: would have to be sold each month to attain a target profit of 54,600 ? (Do not round intermediate calculationa. Rlound final answer up to the nearest whole unit.) assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis. well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,000 units) Complete this question by entering your answers in the tabs below. 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. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (lie, 0.234 should be entered 25 " 2.3" "), round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) 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. Assume that the company expects to sell 20,000 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.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Well as in totai, tor eacn arernauve.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,000 units)? Complete this question by entering your answers in the tabs below. 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. Would you recommend that the company automate its operatians (Assuming that the company expects to sell 20,000 units)