PEM, Incorporated, is experiencing financial difficulty due to enratic sales of its only product, a high-capacily battery for laptop computers. The company's contribution format income statement for the most recent month is given below: Required: 1. Compute the companys CM ratio and its break-even point in unit soles and dollor soles. 2. The president believes a $6,600 increase in the monthly odvertising budget, combined with an intensified effort by the sales staft, wilt increase unit soles and the total soles by $9,000 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 criginal dots. The sales manager is convinced that a 10x reduction in the seling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales managet is right, what will be the revised net operating income (loss)? 4. Refer to the original dato. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase variable costs by $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target peofit of $4,000 ? 5. Refer to the original data, By automsting, the compsny could reduce variable expenses by $3 per unc However, fimdd expenses would increase by $54,000 esch month. a. Compute the new CM ratio and the new break-even point in unit soles and dollar sales. b. Assume the company expects to sell 20.400 unins next month. Prepare two contibution format income statements, one assuming operations are not automated ond one assuming they are. (Show data on a per-unit and percentage basis, as well as in total, for each aternotive) C. Would you recommend the compary automate its operations (Assuming that the company expects to seil 20,400 units)