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Problem 6-22 (Algo) CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6] Due to erabic sales of it sole product-n highicapscity batsery for laptop computer-PEM, incorporsted, has been experiencing financial di thicuty for some time. The company's contribution format income statemert for the mont recent morit is given below: Required: 1 Compete the cempany's cu rato and its break even point in unit sales and dollar sales. 2. The president believes that o $6,000 increase in the monthy adverting butgec combined wo an intersifed effort by the sales staff will inctease unit sales and the total sales by $82,000 per moner. If the president is right, what wit be the increase (decrease) is the comperivis montily net operating income? sayes if the sales manager is right, whwt wit be the revised net operating income fors/7? 4. Delet to the orignal dats. The Marketing Department thinks that a fancy new packege for tre laplop computer bottery would grow whes. The new package woud increase packaging costs by 50.60 per unc Assuming ne othec changes, how many units would have to be sold each month to attain a target proff of $4,700? a. Compute tho new CM rabo and the new break eren point is unt sales and dolar sales. b. Assume this the cosponny expects 10 seli 20,800 unis next month. Prepore two contibution farmat income statements, one assuming that opermions are not aytomated and one assuming that they are (show dats on a per unit and percentage basis, at well as h total, for each allemative.) Complete this question by entering your answers in the tabs belew. (1+9.234 thould be enteres a 7227 Pequired: month if the pievident is tigit, what wit be the increase lolecreasey is the companys menthly net operating income? 3lest if the sales manager is rigit whot wit be the revised net operating income loss)? 4. Pefer to the original cita. The Macketing Department thistss that a fancy new packape for the laptep campuser bettery would grow sales. The new packnge weuld incresse peckeging coss by a Compuse the new CM rabo and the cew breek even point io vrit sales and dellar wes. A. Asware that the compeny eupecas to setl 20.800 unturnext month. Prepare two contibution format income statements, one astuming that operations are nat sifomated and ose atsum ro that sley ce. (show data on a per uniz and percentege bays as wel as in totat, for each alternative) Complete this question by entering your answers in the tabs belon. formia inceine sartemert fic the most iecent month is given below Aeevired 1. Coeppea bie comparys CM nate and ts break evth point if unit asles and dolar wes Complete this dvestion by estering your anwere in the tabe belaw. format hicome stasement for the most recent moekh is glven below Required 1. Cormpule the company's CM tatio and m b'eak-even point in unit sales and dollge sales. merth. If the presigent is right, what will be the increase (decrease) in the compaw/t montrily net operating income? tales, if the soles manager is rigit, what wh be the revised net operating income deselp? \$o 60 per unit. Assuming no other chenges. how mawy units would have to be seld each manth to atein a target profit of 54.700 ? p. Compute the new CM ratio and the new beeakeven point in unt sales and dolar savies. that they se. (Show dets ge a pet unit and petcentrge besis, as wet at in total, for each abernative). c. Woyld you fecommend that the company automste its operations (Aswening that the company expects to sel 20.800 units)? Coemplete this auestion by entering reur answers in the tabe belew. Complete thet questien by satering viur answers in the tabe beliw. Pequired: 1 Corrpule the comparys CM rato and its brevk-even point in unit rales shid dollar sales ficren. If the president is right, What will be the inclease (decreasel in the company's monthly net operating income? sales. If the sales riansoet is right what wil bo the revised net operating income flassi? $0.60 per unt. Assuming no other changes. howe maty units would have to be sold each month to atein a target proft of $4,700 ? a. Compute the new CM ratio and the new beeak-even peint in unit sales and dollsr sales. that they ace. (Show daes on 8 per unit and pertentage basiz, as weli as in fotal, for each sternative) c. Would you recormend thet the company automate lis cperations (Assuming that the company expects to sell a0, 800 units)? Complete this questlen by entering your answers in the tabs below, Funeet) 1. Covepule the combary' CM rato and its break toven point in urvi saies and dol ar ales. mores, il the pretident is right, What wit be the increase (deciease) in the compary's monthly net operating incorre? sales. If thet siles thaneget is right, what wil be the revised net operating inceme dossy? a. Compunt the new CM ratio and the inew treak-evea point in unt sales and oollar s4ies. that they me. ISnow defin on of per unit and perceritge basis, as wed as in tetal, for fach aleemative) t. Would you recommend that the coimpany automate its opetatisht (Aswuming that the cempeny expects to sel 20.800 snits)? Cemplete this twestion by enterind your answers in the tabe below