Problem 5-22 CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure LO5-1, LO5-3, LO5-4,LO5-5, LO5-6 product-a high-capacity battery for laptop computers-PEM, Inc, has been experiencing financial for laptop computer Due to erratic sales of its sole e. The company's contribution format income statement for the most recent month is given below Sales (12,600 units $30 per unit Contribution margin Fixed Net operating loss 378,000 226.800 151, 200 69,200 s (18,000) Required . Compute the company's CM ratio and its break-even point in unit sales and dollar sales t a $6.800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) 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 $39,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the r income (loss)? 4. Refer to the original data. The M 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 $4,000? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses in the company's arketing Department thinks that a fancy new package for the laptop computer battery would grow