Due to erratic sales of its sole product-ahigh-capacity battery for laptop computers-PEM, Inc., has been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (12,900 units x $20 per unit $258,000 154,800 Contribution margin 103,200 Foxed expenses 115,200 Net operating loss (12,000) Required: 1. Compute the companys CM ratio and its break-even point in both unit sales and dollar sales. CM ratio Break-even point in units Break-even point in dollars 2. The president believes that a se,200 increase in the monthly advertising budget, combined wth an in y sales. If president is right, what wil be the effect on the company's monthly net operating income or loss" (use the incremental approach in preparing your answer.)