i really need help with number 1-3!
Due to erratic 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 (19,500 units * $30 per unit) $ 585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net operating loss $ (4,500) 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 $16.000 Increase in the monthly advertising budget, combined with an intensified effort by the sales stoff, will increase unit sales and the total sales by $80,000 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 $60,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating Income foss)? Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round intermediate calculations.) 30% CM ratio Break-even point in unit sales Break-even point in dollar sales 600,000 20,000 Reg 1 Reg 2 Reg 3 Reg 4 Req 5A Reg 5B Reg 5C The president believes that a $16,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $80,000 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.) Increases by $ 136,500 Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $60,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? (Losses should be entered as a negative value.) Revised not operating Income (s) $ 75,9003