ue to erratic sales of its sole producta high-capacity battery for laptop computersFEM, Incorporated, has been experiencing Inancial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (13,000 units X $20 per unit} $ 260,000 Variable expenses 156,000 Contribution margin 104,000 Fixed expenses 116,000 Net operating 1055 $ (12,000} quired: A Compute the company's CM ratio and its break-even point in unit sales and dollar sales. . The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales taff, will increase unit sales and the total sales by $90,000 per month. Ifthe president is right, what will be the increase {decrease} in he company's monthly net operating income? . 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 ncome {loss}? . Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow ales. The new package would increase packaging costs by $0.50 per unit. Assuming no other changes, how many units would have 0 be sold each month to attain a target prot of $4,800? . Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses ould increase by $52,000 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 20,400 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 20,400 units}? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Req 4 Req 5A Req 5B Req 5C Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should be entered as "23"). CM ratio Break-even point in unit sales Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 Req 4 Req 5A Req 5B Req 5C The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $90,000 per month. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? (Do not round intermediate calculations.) by Complete this question by entering your answers In the tabs below. Req 1 Req 2 Reg 3 Reg 4 Req 5A Req SB Req 5C 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)? (Losses should be entered as a negative value.) Complete this questlon by entering your answers In the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5A Reg EB Req 5C Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer batteryr would grow sales. The new package would increase packaging costs by $0.50 per unit. Assumlng no other changes, howI many units would have to be sold each month to attain a target prot of $4,800? (Do not round intermediate calculations. Round nal answer up to the nearest whole unit.) Show less; ( Req3 ReqSA > Complete this questlon by entering your answers In the tabs below. Req 5E5 Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, xed expenses would increase by $52,000 each month. Compute the new CM ratio and the new break-even point In unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage {i.e., 0.234 should be entered as '23"), round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.) Show less; Clul ratio Breakeven point in unit sales Break-even point in dollar sales ( Req4 Req SB > Complete this question by entering your answers In the tabs belom Req 1 Req 2 Req 3 Req 4 Req 5A Req EC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, xed expenses would Increase by $52,000 each month. Assume that the company expects to sell 20,400 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} [Do not round your Intermediate calculatIons. Round your percentage answers to the nearest whole number.) Show less; Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5A Req 5B Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $52,000 each month. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,400 units)? OYes ONo