Due to erratic sales of its sole product-a high-capacity battery for laptop computers--PEM, Inc., has been experiencing difficulty for some time. The company's contribution format incom recent month is given below. Sales (12,700 units X $40 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 500.000 304,800 203,200 227 200 (24,000) $ Required: 1. Compute the company's CM ratio and its break-even point in both unit sales and dollars CM ratio 40% Break-even point in units Break-even point in dollars $ 568,000 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package w Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,000? (Do not round intermediate calculations and ro 109 Updates Available Do you want to restart to install these updates now or try tonight? Sales units 5. Refer to the original data. By automating, the company could reduce variable expenses in half. However, fixed expenses would increase by $53,000 each month a. Compute the new CM ratio and the new break-even point in both unit sales and dollar sales (Use the CM ratio to calculate your break-even point in dollars. Round your fina number.) Break-even point in units Break-even point in b. Assume that the company expects to sell 20,300 units next month. Prepare two contribution format income statements, one PEM, Inc. Contribution Income Statement Not Automated Tom Per Un To Per Unit