Due to etratic saies of its sole product-s high-capacity battery for laptop computers -PEM, inc. has been expeniencing financial difficulty for some time. The company's conubution 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 sales and dollor soles. 2. The president belleves that a $6,900 increase in the monthly adveitising budget, combined with an intensified effort by the sales staff, wil resutt in an $89,000 increase in montrly sales. If the president is iight, what will be the increase (decrease) in the company's monthiy net operating income? 3. Refer to the origthal doto. The sales manager is convinced that o 10% reduction in the selling pice, combined with an increase of $33.000 in the monthly advertising budget, will double un t sa es If the sales manager is ight, what will be the revised het operating income (lossy? 4. Refer to the orginat dato. The Marketing Department thinks that a fancy now package for the laptop computer battery would grow sales. The new package would increase packaging costs by $070 per unit. Assuming no other changes. how many units would have to be sold each month to attain o torget profit of $4,400 ? 5. Refer to the orignal doto. By automoung. the company could reduce variable expenses by $3 per unit. However, fixed expenses would increose by $51,000 eachimonth. a. Compute the new CM rotio and the new breakieven point in unt sales and dollar soles b. Assume that the compony expects to sell 20.600 un is next month. Prepore two contibution format income statements, one assuming that operations ore not automoted and one assum ng that they are. (Show data on a per unt ond percentage bosis, os well as in total for eech olternative) c. Would you recommend that the company outomote its operotions (Assuming that the compeny expects to sell 20,600)? Complete this question by entering your answers in the tabs below. Compute tice companyi Cr rouo and its broskoven pont is unit soles and dollar sales (Do not pound ntermodiote) Complete this question by entering your answers in the tabs below. The prosident pelese tisat-o fogop inereage in the monthly advertiging budget, gombiond wiefian inteneifod offort by the the company's inoptidy wot oparatiag income? (Do rot round intorinodiate caleulbtiono.) Complete this question by entering your answers in the tabs below. Refer to the orlghal deta. The sales manager is convinced that o 10% reduction in the selling price, combined with an increage of 533,000 in the monthly edvert sing budget, will double unit salos. If the sales manager is right, what will bo the revisgd ret obetating income (loss)? (Losgos shourd be entered as o negative valie ) 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 $070 pei unit. Assuming no other changes, how many units would have to be sod deach month to attain a target profit of $4,400 ? (Doinot round intermediate calculations Round final answer to the nedrest whole ontt) Complete this question by entering your answers in the tabs below. Rafer to the oinginal data. By automating, the compary could reduce variable expenses by $3 per unit However, fixed expanses would itcrease by 551,000 each month. Compute tbe new CM ratho and the new break-even pomt in unit sales and dollar sales. (Do not round intermediate calculations. Round ICM ratio" to the nearest whole percentage (i.e., 9.234 should be entered as 25 y and other allswers to the nearest whole iumbeiv). Rater to the onglnal data. Br automating, the company could reduce variable expenses by $3 per unit. Howeve; fixed expenses would increase by $51,000 each monti. Assume that the company expects to seli 20,600 units next month. Prepare two contr bution format income statements, one assuming that operationg ere not autcmated and one assuming that they are. (Show data on a per unit and pecentage bosis; as well as in totas tor eachiaternative.) (oo not poond your intermediate calcilations. Round yout per centage answers to the nearest whole Complete this question by entering your answers in the tabs below. (A)sumine thos the compsin orpocta to selt 20,600 )