PEM, Incorporated, is experiencing financial difficulty due to erratic sales of its only product, a high$-$capacity battery for laptop computers. The company's contribution format income statement for the most recent month is given below.

Sales $(12,600$ units x $$20$ per unit$)$

Variable expenses

$ $252,000$

$11\mathrm{.}5$ points

Contribution margin

$151,200$

Fixed expenses

$100,800$

Net operating loss

$112,800$

$01$:$58$:$22$

$ $(12,000)$

Required:

$1.$ Compute the company's CM ratio and its break$-$even point in unit sales and dollar sales

$2.$ The president believes a $$6,800$ increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $$89,000$ 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 $$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$)?$

$4.$ Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grave sales. The new package would increase variable costs by $$0\mathrm{.}60$ per unit. Assuming no other changes how many units would have to be sold each month to attain a target profit of $$4,400?$

$5.$ Refer to the original data. By automating, the company could reduce variable expenses by $$3$ per unit However, fixed expenses would increase by $$53,000$ each month.

a$.$ Compute the new CM ratio and the new break$-$even point in unit sales and dollar sales

b$.$ Assume the compery expects to sell $20,600$ units next month. Prepare two contribution format inconte statements, one assuming operations are not automated and one assuming they are. $($Show date on a per$-$unit and percentage basis, as well as in totel, for each elternative$)$

c$.$ Would you recommend the company automate its operations $($Assuming that the company expects to sell $20\mathrm{.}600$ units$)$

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Compute the company's CM ratio and its break$-$even point in unit sales and dollar sales. Note: Do not round Intermediate calculations, Round CIM ratio to the nearest inele

entered as $23"$

percentage $61224$ should be