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 (1), 200 units 530 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $399,000 239.600 159.600 272.600 (10,000) 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 56,200 increase in the monthly advertising budget combined with an intensified effort by the sales staff will increase unit sales and the total sales by 584,000 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 $31.000 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 50 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 date. By automating, the company could reduce variable expenses by S3 per unit. However, fixed expenses would increase by $56,000 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 units)? Complete this question by entering your answers in the tabs below. Hea Hea 4 RG SA R 50 Reg 5 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling prico, combined with an Increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised not operating income (lossy (Losses should be entered as a negative value) Revised not operating income wwwwwww MESA difficulty for some time. The company's contribution format income statement for the most recent month is given below Sales (13,300 units 530 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 399,000 239,480 159,600 177,600 $ 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 $6,200 increase in the monthly advertising budget combined with an intensified effort by the staff will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the increase (decree 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 increas $31,000 in the monthly advertising budget will double unit sales. If the sales manager is right what will be the revised net oper income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would sales. The new package would increase packaging costs by $0.50 per unit Assuming no other changes, how many units would 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 $56,000 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. 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 urt) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg4 Reg SA Reg SB Req SC 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 Unitswes to attain target profit o Mail - Reed, Kaila (B. M McGraw-Hill Conne. WebAdvisor Main. Home Watch carto... in Kaila Reed | Linkedin 50 Saved staff, will increase unit sales and the total sales by $84.000 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 $31.000 in the monthly advertising budget will double unit sales. 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 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 $56,000 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 units)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req SA Reg 58 Reg SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $56,000 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 (... 0.234 should be entered as "23") and other answers to the nearest whole number.) Show less CM ratio Break even point in unit sales Break-even point in dollar salos Red 1 Reg 2 Rega Reg 4 Reg 5A Reg 58 Req5C Refer to the original data. By automating, the company could reduce variable expenses by $) per unit. However, fixed expenses would increase by $56,000 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 % % Automated Per alt Total 05 0 0 % 05 0 % $ 0 0 Would you recommend that the company automate its operations Assuming 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. By automating, the company could reduce variable expenses by $a per unit. However, fixed expenses would increase by $56,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700 units)? OYes ONO