Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM. Incorporated, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below. 1 Sales (13,300 units X $30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 399,000 239, 400 159.600 171 600 $ 18,099) 5 points Skipped 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 $6,300 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 $37.000 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 $4,1007 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 Req3 Reg 4 REG 5A Reg 5B Req 50 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 de 0.234 should be entered as '23"). CM ratio Break-even point in unit sales Break even point in doar sales Ren2 4. Reier w me onginai udla. The vidikeung vepalume TKS ulat dianity new palkaye ute aptop.com sales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how man to be sold each month to attain a target profit of $4,100? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However would increase by $55,000 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; assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basi 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 unit d Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5A Req 5B Req 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.) by Chapter o Graded one-attempt HW i Saved Hate 4. Reier wure nymidi uala. The Walkeuny vepar une UKS ud a lancy new package or we laptop comedy w 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 $4,100? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 5 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.) points c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700 units)? Skipped 1 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Req 5A Reg 5B Req 5C Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $37,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Revised net operating income (loss) 1 4. REIEI Lule onynia uald. The dikey vepar une KS inal a lancy new palkaye Ure laptop computer wately wulugu 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 $4,100? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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)? 5 points Skipped Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Req 5B Req 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 $4,100? (Do not round Intermediate calculations. Round final answer to the nearest whole unit.) Show less Unit sales to attain target profit 1 to be sold each month to attain a target profit of $4,100? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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)? 5 points Skipped Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4 Req 5A Req 5B Req SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 (i.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 sales Break-even point in dollar sales Complete this question by entering your answers in the tabs below. 1 Req 1 Reg 2 Req3 Req 4 Req 5A Req 5B Req 5C 5 points Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 nyt 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.) Skipped Show less PEM, Incorporated Contribution Income Statement Not Automated Total Per Unit % Automated Per Unit Total %