Due to erratic sales of its sole producta high-capacity battery for laptop computersPEM, Inc., has been experiencing financial difficulty for some time. The companys contribution format income statement for the most recent month is given below:

Sales (19,500 units $30 per unit)	$	585,000
Variable expenses		409,500
Contribution margin		175,500
Fixed expenses		180,000
Net operating loss	$	(4,500	)

Required:

1. Compute the companys CM ratio and per unit Contribution Margin
2. Compute the companys break-even point in unit sales and dollar sales.
3. Compute the companys required unit sales and dollar sales if they want a Target Profit of $18,000.
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 packaging costs would increase variable expenses by $1.50 PER unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $9,750?