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Due to ematc sales of its sole produc highea achy battery for lptop income statement for the most recent month is given below mp terr-PEM, Inc has been experiencing tan al di culty for so ne sme. The companys totten tom t Sales (13,100 units $20 per unit) Fixed expenses Net operating loss 104,800 116,800 $ (12,000) 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensfied effort by the sales staff, will result in an $81,000 increase in monthly sales.I the president right, what wil be te increase (decrease) in the company's monthly 3.Reir to the or nal data. The sales manager isonvinced that 10% duction in the seling pri contine anle ease os co nthe monty adrsin budget wil duta 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 grow sales. The new package would increase packaging costs by 0.50 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,500? 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 that the dompany expects to sell 20,600 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) c.Would you recommend that the company automate its operations? net operating income? Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4 Req SARea 5B Req Sc Assume that the company expects to sell 20,600 units next month. Prepare two contnbution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each mative.) (Round your percentage answers to the nearest whole number) PEM. Inc. Contribution Income Statement Not Automated Total Per Unit Total Per Unit