Due to erratic sales of its sole product--a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial imculty for some time. The company's contribution format income statement for the most recent month is given below Sales (13, 100 units - 330 per unit) $ 33,000 variable expenses 235.000 contribution margin 157,200 Fixed expenses 175,200 et operating loss 5 (10,000) Required: 1. Compute the company's CM ratio and its break even point in unt sales and dollar sales 2. The president believes that a $6,200 increase in the monthly advertising budget combined with an intensified or by the start will increase unit sales and the total sales by 588.000 per month the president is right, what wo be the screen 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 $32,000 in the monthly advertising budget wit double unitsoles. If the sales manager is right, what will be the riseret opening Income (los) 4. Refer to the original date. The Marketing Department think that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,6007 5. Refer to the original data. By automating, the company could reduce variable expenses by $5 per unt. However, teed expenses would increase by $59.000 each month Compute the new CM ratio and the new break even point in unit soles and door sales b. Assume that the company expects to sell 21000 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 petunt and percentage basis as well as in total for each alternative) c. Would you recommend that the company automate its operations Assuring that the company expects to sell 21000 unt