Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. 2. The president believes that a $10,000 increase in the monthly advertising budget, combined with an intensied effort by the sales staff, will result in an $90,000 increase in monthly sales. If the president is right, what will be the effect on the company's monthly operating income or loss? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $60,000 in the monthly advertising budget, will cause unit sales to double. What will the new contribution format income statement look like if these changes are adopted? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery will help sales. The new package would increase packaging costs by T5 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $0,?50? 5. Refer to the original data. By automating certain operations, the company could reduce variable costs by $3 per unit. However, fixed costs would increase by $72,000 each month. a. Compute the new CM ratio and new break-even point both in units and dollars? b. Assume that the companyr expects to sell 20,000 units next month. Prepare two contribution format income statement, one assuming that operations are not automated and one assuming that they are. Show data on a per unit basis, as well as in total, for each alternative. c. Would you recommend that the company automate its operations? Explain