Problem 5-22i) Save & E Saved Help Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return t 1 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below 10 Sales (13, 400 units x $30 per unit) 402,000 points Contribut ion mare Fixed expenses 201,000 223,500 $ (22,500) argin Net operating loss Required: 2, Thete the company's CM ratio and its break-even point in unit sales a combined with an intensified effort by the sales dollar sales. adhorti sident believes that a $6.70O increase the staff. will result in an $86.000 increase in monthly sales, 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 $36,000 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 grow sale 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 $4,200? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $56,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,900 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 (Assuming that the company expects to sell 20,900)? 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 $56,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,900 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 (Assuming that the company expects to sell 20,900)? ts Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 5A Req 5C Req 4 Req 5B Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $56,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Round "CM ratio" to the nearest whole percent and other answers to the nearest whole number.) CM ratio % Break-even point in unit sales Break-even point in dollar sales Req 5B Req 4 1 a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,900 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 as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900)? per unit and percentage basis, as well 1C points Complete this question by entering your answers in the tabs below. eBook Print Req 4 Req 5A Req 5B Reg 5C Req 1 Req 2 Req 3 References the ts to sell 20.900 units nevt u 5 uld increase by $56.000 each month. Assume that the Drenare 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 total, for each alternative.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Show less A PEM, Inc. Contribution Income Statement Not Automated Automated Total Total Per Unit Per Unit % % 0 % 0S 0 % 0. 0 S 0 Req 5A Req 5C 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 $56,000 each month a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,900 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 (Assuming that the company expects to sell 20,900)? 10 points eBook Print References Complete this question by entering your answers in the tabs below. Req 5C Req 1 Req 2 Req 3 Req 4 Req 5A Req 5B Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $56,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900)? Yes No Reg 5C> Req 5B