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 (13.000 units 530 per unit) Variable expenses Contribution margin Fixed expenses Net Operating loss $390,000 234,000 156,000 20.000 (18.000) 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 56700 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 monthIf 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 $36,000 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 S0.50 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,9002 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 perunt. However, fixed expenses would increase by $57,000 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 20.900 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) 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. Reg! Reg 2 Reg2 Red ROG SA Reg Rog SC Compute the company's CM ratio and its break even point in unit sales and doar sauso not reundina to be sold each month to attain a target profit of $4.900 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. Howeve would increase by $57000 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 20,900 units next month. Prepare two contribution format income assuming that operations are not automated and one assuming that they are. (Show data on a per unit and perc well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to se Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 5B Reg SC Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ration to the nearest whole percentage (i.e., 0.234 should be entered as "23"); CM ratio Break-even point in unit sales Break-even point in dollar sales Reg 1 Reg 2 > Mc araw 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed ex would increase by $57,000 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 20,900 units next month Prepare two contribution format income statement assuming that operations are not automated and one assuming that they are (Show data on a per unit and percentage ba well as in total, for each alternative.) c Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Reg SB Req SC The president believes that a $6,700 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? (Do not round intermediate calculations.) by ache Text hier eingeben O C S. Assuming no other changes, how to be sold each month to attain a target profit of $4.900 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. Hov would increase by $57,000 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 20,900 units next month. Prepare two contribution format inco assuming that operations are not automated and one assuming that they are. (Show data on a per unit and well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Red SA Reg SB Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, expenses would increase by $57,000 each month. Compute the new CM ratio and the new break-even point in ur dollar sales. (Do not round intermediate calculations. Round "CM ratio to the nearest whole percentage (1.0.2 be entered as "23") and other answers to the nearest whole number.) sli CM ratio Break-even point in unit sales Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg SA RegSB Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, Fixed expense by $57,000 each month. Assume that the company expects to sell 20,900 units next month. Prepare two contribution formati statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and basis, as well as in total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers whole number.) PEM, Inc. Contribution Income Statement Not Automated Total Per Unit % % % 0 $ 0 0 % Automated Per Unit Total el % 0 $ 0 0% 0 $ 0 $36.000 in the monthly advertising budget. Will double unit sales if the sales manager is right, what will be the revise Price, combined with income (loss) 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer batt sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many to be sold each month to attain a target profit of $4,900? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fi would increase by $57,000 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 20.900 units next month. Prepare two contribution format income sta assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percer well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 2 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA 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 increase by $57,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900 units)? Yes ONO ( Req 5B