Due to erratic sales of its sole product-a high-capacity battery for iaptop 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 Required: 1. Corrpute the compeny's CM ratio and its break even point in unit sales and dotlat sales 2. The president betieves that a $6,200 increase in the monthly odvertising budget, combined with an intensfied etfort by the sales statt, wili increase unit sales and the total soles by $85,000 per month. If the president is aght, whot will be the increase (decreose) in the compony's monthly net operoting income? 3. Refer to the originat data the sales manager is convinced that a 10\% reduction in the selling price, combined with on increase of $35,000 in the monthly advertsing budget will double unit rales if the sales manager is nght what wil be the revised net operating income (ioss)? 4. Refer to the onginal doto. The Marketing Deparment thinks that a fancy new package for the laptop computer batery would grow sales. The new pockage would incroase pockoging costs by $040 pet unit Assuming no other changes, how many units would have to be sold each month to attain a target profi or $4,900 ? 5. Refer to the original data By automating, the company could teduce vonable expenses by $3 per unit However, fixed expenses would increase by $57.000 each month a. Compute the new CM ratio ond the new break even point in unt sales and dollor sales b. Assume that the company expects to sell 20,600 units next month. Prepare two contribution format income statements, one assuming that operations ate not automated and one assuming that they are (Show dato on a per unit and percentage basis; as weit as in total, for edch alternotive) c. Would you recommend that the compary automate its operations (Assuming that the company expects to sell 20.600 units)