Due to erratic sales of its sole product-a high-capacity battery for laptop experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below Inc., has been Sales (12,900 units x $40 per unit) Variable expenses $516,000 309.600 Contribution margin Fixed expenses 205,400 230,400 Net operating loss S (24,000) Required 1. Compute the companys CM ratio and its break-even point in both unit sales and dollar sales. CM ratio Break-even point in units Break-even point in dollars 2. The president believes that a $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, hat will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer.) 3, Refer to the original data. The sales manager is convinced that a 10% reduction in the selling pnce combined with an increase of 531,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? PEM, Inc. Contribution Income Statement 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.60 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,600? (Do not round your intermediate calculations. Round your final answer to nearest whole number.) s units