Due to errotic 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 Sales (12.700 units 520 per unit) Variable expenses Contribution train Fixed expenses Net pertine loss $ 254,020 127,000 127.000 14.00 5. (15.00) Required: 1 Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2 The president believes that a $6,900 Increase in the monthly advertising budget, combined with an intensified effort by the sales Start, will increase unt sales and the total sales by $87.000 per month If the president is right, what will be the increase (decreate) in the company's monthly net operating income? 3. Refer to the original data. The sales manager is convinced that o 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget. will double unit sales of the sales manager is right, what will be the revised net operating Income oss? 4 Refer to the onginal dato 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 50,40 per unit Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4.2002 5. Refer to the original dots. By automating the company could reduce variable expenses by $3 per unit. However, foed expenses would increase by $54,000 each month a Compute the new CM ratio and the new break-even point in unit sales and dollar sales D. Assume that the company expects to sell 20,400 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 Would you recommend that the company automate its operations (Assuriing that the company expects to cell 20.400 units)? Complete this question by entering your answers in the tabs below. 1 pter 6 Graded one attempt HW 0 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget. Will double unit sales. If the sales manager is right, what will be the revised net operating Income (los)? 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 $4.200? 5. Refer to the original data. By automating the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 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 20,400 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 20,400 units)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 4 Rag SA Red 50 Ragsc Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round Intermediate calculation. Round Miatio to the nearest whole percentage (0.234 should be entered as "23"). CM ratio Break even point is unit les Break-even point in dollar sales Req 2 > Seve 6 Graded one-attempt HW 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price. combined with an increase of $39,000 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 computer battery would grow sales. The new package would increase packaging costs by S040 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4.2002 5 Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month. a compute the new CM ratio and the new break-even point in unt sales and dollar soles. b. Assume that the company expects to sell 20.400 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.) Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.400 units)? Complete this question by entering your answers in the tabs below. 1 Reg 2 Rega Reg 4 ReqSA Reg se Reg SC The president bebeves that a $6,900 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) Save er 6 Graded one attempt HW stan, will increase unit sales and the total sales by $87,000 per month in the president is night, 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 $39.000 in the monthly advertising budget, will double unit sales. If the sales manager is right what will be the revised net operating Income (oss)? 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 50 40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4.2007 5 Refer to the original data By automating. the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by S54.000 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 20,400 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 altemative.) c Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 units)? Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Red Reg4 ReSA Reg 58 Reg SC Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an Increase of $39.000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised not operating income foss)? (Losses should be entered as a negative value.) Revised net operating income (Reg 2 Req 4 ) Saved er 6 Graded one attempt HW 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39.000 in the monthly advertising budget will double unit sales. If the sales manager is right what will be the revised net operating Income foss)? 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 S0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of SA 2007 5. Refer to the original data. By automating the company could reduce variable expenses by $3 per unlit However, flixed expenses would increase by $54,000 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 20,400 unts 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 20,400 units)? well as in total, for each alternative.) Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Reg 2 Reg 4 Req5A Reg 58 Reg 5C 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 30.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,2007 (Do not round intermediate calculations. Round final answer to the nearest whole unit.) Show less Un sales to attain target prost 1 apter 6 Graded one attempt HW 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising budget, will double unit sales. If the sales manager is right. what will be the revised net operating Income foss)? 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 $4.200? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by S54.000 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 20,400 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 20,400 units)? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg Reg 58 Reqs Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 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 ... 0.234 should be entered 23") and other answers to the nearest whole numben) Show less CM ratio Break-even point in unit sales Break even point in dollar sales Saved Chapter 6 Graded one attempt HW Complete this question by entering your answers in the tabs below. 1 1 Reg 1 Reg 2 Reg 3 Reg 4 Reg SA Reg 58 Reg 5C Refer to the original data. By automating, the company could reduce variable expenses by s3 per unit. However, fuced expenses would increase by $54,000 each month. Assume that the company expects to sell 20.400 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 colculations Round your percentage answers to the nearest whole number) Show less PEM, Incorporated Contribution Income Statement Not Automated Total Per Unit Automated Per Unit Total saved 1 Chapter 6 Graded one-attempt HW e commonly net operdung cutter 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $39,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income foss)? 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 $4.2007 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales D. Assume that the company expects to sell 20.400 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 20.400 units)? 5 Complete this question by entering your answers in the tabs below. Regt Reg 2 Reg 3 Req4 Re SA Reg 55 Reg 5c Refer to the original data, By automating, the company could reduce variable expenses by 53 per unit. However, fixed expenses would increase by $54,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20.400 units)? Yes NO