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. Required: 1. Compute the company's CM ratio and its break-even point in unit soles and dollar sales: 2. The president believes that a $6,100 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $90,000 per month. If the president is tight, what will be the increese idecreate) in the company's monthly net operating income? 3. Refer to the onginal data. The sales manager is convinced that a 10s reduction in the seling price, combined with an inciease of $34,000 in the monthly odvertising budget, will double unit soles. If the sales manager is right, what wili 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 $0,70 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, fived expenses would increase by $57,000 each month a. Compute the new CM ratio and the new break-even point in unit sales and dollat 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 und and percentage basis, as well as in total, for each alternative.) would increase by $57,000 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 20700 units)? Complete this question by entering your answers in the tabs below. The president believes that a $6,100 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $90,000 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 calculatons.) would increase by $57.000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollor 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 dota 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. 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 (i.e., 0.234 should be entered as "23"), would increase by $57,000 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 cantribution 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 weil as in total, for each alternative.) c. Would you recommend that the company automate its operotions (Assuming that the compony expects to sell 20700 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 $34,000 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.) would increase by $57,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and doliar 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 unin 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 unity)? 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 s0.70 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 up to the nearest whole unit.) would increase by $57,000 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 forntat income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage bosis, as well as in total, for each alternative) c. Would you recommend that the company automate its operations (Assuming that the company expects to seil 20,700 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 $57,000 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 (1.e, 0.234 thould be entered as "23"), round "Break-even point in unit sales" up to the nearest whole unt and round "Break-even point in dollar sales" to the nearest whole dollar.) Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses. would increase by $57,000 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. (Stow 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.) assuming that operations are not automated and one assuming that they are. (Show data qin 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 20700 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, fued expenses would increase by $57,000 each month. Would you recommend that the company automate is operations (Assuming that the company expects to sell 20,700 units)