Due to unpredictable sales of its sole product-a high-capacity battery for laptop computers-Energy, Inc. has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (13,200 units x $25 per unit) $330,000 Variable expenses 198,000 Contribution margin 132,000 Fixed expenses 147,000 Net operating loss $(15,000 ) Each requirement is independent of the others. Requirement a. Compute the company's variable expense ratio (ie, 0.23 should be entered as "23"); b. Compute the company's break-even point in dollar sales: Requirement #2 The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $95,000 per month If the president is right, what will be the increase (decrease) in the company's monthly net operating income? The sales manager is convinced that an 8% 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)? (if it is a loss, please enter with a minus sign in front. For example -20,000.) Requirement #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 $0.80 per unit. Assurning no other changes, how many units would have to be sold each month to attain a target profit of $4,200? Requirement #5 Refer to the original data. By automating, the company could reduce variable expenses by $10 per unit. However, fixed expenses would increase by $80,000 each month. a. Compute the new CM ratio (ie., 0.23 should be entered as "23"); b. Compute the new break-even point in unit sales: c. Compute the new break-even point in dollar sales: d. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,100 units)