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 (12,900 units * $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 387,000 193,500 193,500 216.000 $ 22,500) Required: Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff , will increase unit sales and the total sales by $87,000 per month. 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 $36,000 in the monthly advertising budget will double unit salos. 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 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 data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 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 20,400 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 20,400 units)? DOCS. THEW Polnaye woulu paunayy US wypu. U per un MSSTY V ULICI Conyes, HUW rany un 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, fixer would increase by $51,000 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 20,400 units next month. Prepare two contribution format income statem assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentag well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,40 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Req 5A Reg 5B Req 5C Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round Intermediate calculations. Round "CM ratio" to the nearest whole percentage (1.e., 0.234 should be entered as "23"). CM ratio Break-even point in unit sales Break-even point in dollar sales 50 % 14.400 432,000 $ K Red Reg 2 > to be sold each month to attain a larget 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed ex would increase by $51,000 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 20,400 units next month. Prepare two contribution format income statements 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 20,400 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5A Reg 5B Reg 5C The president believes that a $6,300 Increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $87,000 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.) Increases 37.200 ( Req 1 Req3 > 5. Refer to the original data. By automating, the company could red vould increase by $51,000 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 20,400 units next month. Prepare two contribution format income statements, assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bas well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 un Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Req3 Reg 4 Reg SA Reg 5B Reg 5C 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 unt sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Rovived not operating income (loss) Req 2 Reg 4 > SED. THEW Polnoye wUUIU LICOSE packagwiy LUSS wy UJU Peru, Sumy I VUCI Unyes, How many u Wuru 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 expens would increase by $51,000 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 20,400 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, a well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 units) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 5B Reg 5C 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? (Do not round intermediate calculations. Round final answer to the nearest whole unit.) Show less Unit sales to attain target profit 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However , fixed expense vould increase by $51,000 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 20,400 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 20,400 units)? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Req4 Reg SA Reg 5B Reg 5C Refer to the original data. automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 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 (.e., 0.234 should be entered as "23") and other answers to the nearest whole number) Show less CM ratio Break-even point in unit salos Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg SB Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. Assume that the company expects to sell 20,400 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 % % % 0S 0 01% Automated Per Unit Total 90 % % 0 % os 0 $ 0 $ 0