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 (13,100 units $29 per unit) Variable expenses contribution margin Fixed expenses Net operating loss $ 262,000 131,000 131,000 146,000 $(15,000) Required: 1. Compute the company's CM yatio 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 statt, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) 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 price, combined with an increase of $34.000 in the monthly advertising budget, Will double unit sales, if the sales manager is right, what will be the revised net operating income foss)? 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 $0.50 per unit. Assuming no other changes, how many units would have 5 Refer to the original ata. By butomoting, the company could reduce variable expenses by S3 per unit. However, fixed expenses 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 20.700 units next month. Prepare two contribution format income statements, one assuring 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 20.700? Complete this question by entering your answers in the tabs below. Ren Flag 2 Rega Reg Rec SA Req 50 Rea SC Refer to the orginal data by automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Would you recommend that the company automate its operations Assuming that the company expects to sell 20,700) Yes 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 (13,100 units X 520 per unit) variable expenses Contribution margin Fixed expenses Wet operating loss $ 262,000 131.000 131,eee 146,eee $(15,00) 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 result in an $88.000 increase in monthly sales. If the president is right, what will be the increase (decrease 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 price.combined with an increase of $34000 in the monthly advertising budget will double unit sales. If the sales manager is right what will be the revised net operating income foss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow satel. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have 5. Refer to the original data. By automating, the company could reduce variable expenses by 53 per unit. However, fixed expenses would increase by $55,000 each month a Compute the new CM radio and the new break-even point in unit sales and dollar sales b. Assume that the company expects to sell 20.700 units next month. Prepare two contribution format income statements, one assuming mat operations are not automated and one assuming that they are (Show date 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 20.700)? Complete this question by entering your answers in the tabs below. Reu2 Rega R4 Reg 5 Raga Regsc The president teves that a 56,400 increase in the monthly advertising budget, combined with an intensified effort by the sales staff will result in an 88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculations) (Reg Req>> 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 (23, 100 units = $20 per unit) variable expenses Contribution margin Fixed expenses Net operating loss $ 262,00 131,00 131,200 146,000 $ (15,60e) Se Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2. The president belleves that a $6,400 increase in the monthly advertising budget combined with an intensified effort by the sales utaft, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease 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 price, combined with an increase of $34.000 in the monthly advertising budget will double unit sales. If the sales manager is right, what will be the revised net operating income foss)? 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 $0,50 per unit. Assuming no other changes, how many units would have 5. Roter to the original data. By automoting the company could reduce variable expenses by 53 per unit. However, fixed expenses would increase by $55.000 each month 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 20.700 units next month. Prepare two contribution format income statements, one tuning 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 20,700)? Complete this question by entering your answers in the tabs below. Rega a SA Reg 3 Heesc Befer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (los) (one should be entered as a negative value) 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 (13,188 units x 520 per unit) variable expenses Contribution margin Fixed expenses Net operating loss $ 262,000 131,00 131,ce 146,Bee 5 (15,000) Required: 1. Compute the company's CM yatio 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 statt, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) 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 price, combined with an increase of 534.000 in the monthly advertising budget, will double unit sales. If the sales manager is night, what will be the revised net operating income)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow salesThe new package would increase packaging costs by 50 50 per unit. Assuming no other changes, how many units would have 5 Refer to the original data By nutomoting the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55.000 each month - Compute the new CM tatio and the new break-even point in un soles and dollar sales b. Antune that the company expects to sell 20.700 units next month. Prepare two contribution format income statements, one stoming that operations are not automated and one assuming that they are (Show data on a per unit and percentage basis, as well c Would you recommend met the company automate its operations (Assuming that the company expects to sell 207001? Complete this question by entering your answers in the tabs below. Reg R4 R 50 Regsc Balet to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would wow sales. The new package would increase packaging costs by 10:50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,6007 Do not round intermediate calculations. Round final to the whole Show 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 (13,1ee units $28 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 262,000 131.ee 131,eee 146,000 $ (15,000) onces 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 result in an $88,000 increase in monthly sales. If the president is right. What will be the increase (decrease) 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 price.combined with an increase of $34.000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income doss)? 4 Refer to the onginal 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 $0.50 per unit. Assuming no other changes, how many units would have 5. Refer to the ongenal data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55.000 each month a Compute the new CM ratio and the new break-even point in unt sales and dollar sales Assume that the company expects to sell 20.700 units next month Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show dato on a per unit and percentage basis, as well c Would you recommend that the company automate its operations (Assuming that the company expects to cell 20.700)? Complete this question by entering your answers in the tabs below. Teg Bega Rag HSA Rego Reg SC Defer to the onginal data. By automation, the company could reduce variable expenses by $5 per unit. However, fixed expenses would increase by $55,000 each month Compute the new Ht ratio and the new break-even point in unt sales and dollar sales. Do not round intermediate calculations, RoundCM ratio to the nearest whole percentage (0.234 should be res) and other swers to the whole number) ant will result in an $88.000 Increase in monthly sales in the president is right, what will be the increase (decreases in the company onthly 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 34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating ncome (loss)? 3. 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 $0.50 per unit. Assuming no other changes, how many units would have 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 expenses would increase by $55,000 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 20,700 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 20,700)? Complete this question by entering your answers in the tabs below. Reg! Reg 2 Reg 3 Reg 4 Reg 5 Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increas by $55,000 each month. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Show less PEM, Inc. Contribution Income Statement Not Automated Total Per Unit % 1% 0$ 0 01% Automated Per Unit Total % 0 $ 0 0 % 5 0