PEM, Incorporated, is experiencing finaricial difficulty due to crratic 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 company's CM ratio and its break-even point iriunit sales and dollar sales. 2. The president believes a $6,700 increase in the monthly aovertising budget combined with an lotensified effort by the sales staff, will increase unit sales and the total sales by $89,000 per month if the president is right, whot 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 wil couble 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 oew package for the laptop computer battery would grow sales. The new package would increase variable costs by $0.40 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200 ? 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 breakeven point in unit sales and dollar sales b. Assume the company expects to sell 20,600 units next month. Prepare two contribution format income statements, one assuming operations are not automated and one assuming they are. (Show data on a per-unit and porcentage basis, as well as in total, for each alternative). c. Would you recommend the company automate its operations (Assuming that the company expects to sell 20,600 units)? Complete this question by entering your answers in the tabs below. Compute the company's CM ratio and is break-evpn point in unit scales and doltar sales. 3. Refer to the original dota. The sales manager is canvinced that a 10% reduction in the selting price, combined with an increase of $33,000 in the monthly advertising budget, will double unit saies. If the sales mannger is right, what will be the revised net operating income (loss)? 4. Reler 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 increose varlable costs by $0.40 per unit. Assuming no other changes, baw inany units would have to be sold each month to attain a target proft of $4,200 ? 5. Refer to the original data. By automating. the company could reduce varlable expenses by $3 per unit. Howeve, fixed expenses would increase by $53,000 each month. a. Compute the new CM ratio and the new breok-oven point in tinit sales and dollor sales. b. Assume the company expects to sell 20,600 units next month. Prepare two contribution fornat income statements, one assuming operations are not automated and one assuming they are. (Show data on a perunit and porcentage basis, as well as in total, for each aternotive.) c. Would you recommend the company automate its operations (Assuming that the company expects to sell 20,500 units? Complete this question by entering your answers in the tabs below. Refer to the onginal data. By automating, the cempany could reduce variable expenses by $3 per unit. Howeve, fixnd Refer to the onginal data. By automating, the cempany could reduce variable expenses by $3 per unit. Howeve, fixad expenses would increase by $53,000 each nonth. Compute the new CM ratio and the new break-even point in init salen and dollar sales. Note: Do not round intermedate calculations. Round " CM nitio" to the nesrent whole percentage (t.e., 0.234 should be siles" to the nearest whole delis