Due to erratic sales of its sole product-a high-capacity battery for laptop computers - PEM, Incorporated, has been experencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below. Required: 1 Compute the company's CM ratio and its break-oven point in unit sales and olllar soles 2. The president believes that a $6,700 increase in the monthly advertising budget, combined with an interisified effort by the saies staff, Win increase unit soies and the total sales by $87,000 per month. if the president is right, what will be the ncrease (decrease) in the company's monthly net operating income? 3. Refer to the original data. The sales manager is convinced that o 100 reduction in the scaling paice, combined wath an increase of $35,000 in the monthly advertising budget, wil double unit soles If the sales manager is right, what will be the revised net operating income (loss)? 4. Refes to the original data. The Marketing Department thinks that a fancy new packago tor the laptop computer battery would grow sales: The new package would increase packaging costs by $0,40 per unit. Assuming no othet changes, how many units would hawe to be soid each month to attain a target profit of $4700 ? 5. Rofer to the original data. By autortating, the cormpany could reduce variable expenses by $3 por unit: However fued 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 soles b. Assume that the company expects to sell 20,300 units next month. Prepare two contribution format income statements, one. assuming that operations are not automated and one assuming that they ore. (Show dato on a per unit and percentage basis as well as in total, for each allernative.) c. Would you recommend that the company outomate its operations (Assuming that the company expects to sell 20,300 units?? Complete this question by entering your answers in the tabs below. Compute the company's CM ratio and its break even point in unit sales and dollar sates: (Do not round intemnediate. 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 20,300 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 20,300 units)? Complete this question by entering your answers in the tabs below. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do ndesround intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e,, 0.234 should be entered as " 23 ). 4. Herer to the onginat aata. Ine marketing vepartment tninks that a tancy new package tor tne laptop computer oattery wounc grow sales. The new package would increase packaging costs by $0.40 per unit. Assuming no other changes, how maify units would have to be sold each month to attain a target profit of $4,700 ? 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 20,300 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 20,300 units)? Complete this question by entering your answers in the tabs below. The president believes that a $6,700 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.) DJb.vuU in the monthiy aovertising buaget, wii doubie unit saies. It the saies manager is rignt, wnat wir de 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 $0.40 per unit. Assuming no other changes, how many units would Have to be sold each month to attain a target profit of $4,700 ? 5 . Refer to the original data. By automating, the company could reduce varkable 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 20,300 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 20,300 units)? Complete this question by entering your answers in the tabs below. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $35,000 in the monthly advertising budget, will double unit sales. If the sales manager is nght, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) 4. Kerer to the originai data. Ine marketing vepartment thinks that a rancy new package tor the laptop compurer Dattery wouic grow sales. The new package would increase packaging costs by $0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4.700 ? 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 20,300 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 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 20,300 units)? Complete this question by entering your answers in the tabs below. 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 $0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700 ? (Do not round intermediate calculations. Round final answer up to the nearest whole unit.) 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 20,300 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, os well as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300 units)? Complete this question by entering your answers in the tabs below. 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. Compute the new CM ratio and the new break-even point in unit soles 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 ), round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. 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 20,300 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.) 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 20,300 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 c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300 units)? Complete this question by entering your answers in the tabs below. Refer to the onginal data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $51,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,300 units)