PEM Inc, is experiencing financial difficulty due to erratic sales of its only product, a high-capacity battery for laptop computers. The companys contribution format income statement for the most recent month is given below: Help with # 3 & 4 Please?

1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes a $6,700 increase in the monthly advertising budget, combined with an intensified effort by the sa will increase unit sales and the total sales by $87,000 per month. If the president is right, what will be the increase (decre 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 incr $33,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised ne operating income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery wo sales. The new package would increase variable costs by $0.40 per unit. Assuming no other changes, how many units wo to be sold each month to attain a target profit of $4,100 ? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed exp would increase by $58,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume the company expects to sell 20,400 units next month. Prepare two contribution format income statements, on assuming operations are not automated and one assuming they are. (Show data on a per-unit and percentage basis, a total, for each alternative.) c. Would you recommend 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. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $33,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? Note: Losses should be entered as a negative value