Due to erratic sales of its sole product-a high-copacity battery for Loptop computers-.peM, Incorporated, hos been experiencing financial difficulfy for some time. The company's contribution format income statement for the most recent month is olven beliow Required: 1. Compute the company's CM ratio and its break-even point in unit sales and doliar sales. 2. The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $83,000 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. $33,000 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 computen battery would grow sales. The new package would increase packaging costs by 50.60 per unit. Assuming no other changes, how mary units would have to be sold each month to attain a target profit of $4,900 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, flaked expenses 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 20,200 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 sol 20.200 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 mi calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should be entered The president believes that a $6,200 increase in the monthly advertising budget, combined with an inter sales staff, will increase unit sales and the total sales by $83,000 per month. If the president is right, w\} increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculi 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, combine increase of $33,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, v revised net operating income (Ioss)? (Losses should be entered as a negative value.) Rerer to the original data. The Marketing Departhent thinks that a fancy new package for the laptop compute grow sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other changes. would have to be sold each month to attain a target profit of $4,900 ? (Do not round intermediate calculation answer up to the nearest whole unit.) Refer to the original data. By automating, the company could reduce variable expenses by $3 per expenses would increase by $57,000 each month. Compute the new CM ratio and the new breakdollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole perc entered as " 23 ), round "Break-even point in unit sales" up to the nearest whole unit and round sales" to the nearest whole dollar.) Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, foxed expenses would increase by $57,000 each month. Assume that the company expects to sell 20,200 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) 4. Refer to the original data, The Marketing Department thinks that-a fancy new package for the laptop cornputer battery would grow sales. The new package would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units would haye to be sold each month to attain a target profit of $4,900 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, Axed 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 20,200 units next month. Prepare two contribution format income stafements, one assuming that operations are not automated and one assuming that they are. (Show data on aper unit and percentage basts, as well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to soll 20,200 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. Would you recommend that the company automato its operations (Assuming that the company expects to sell 20,200 units)