You received partial credit in the previous attempt. 3 Due to erratic sales of its sole producta high-capacity battery for laptop computersFEM, Incorporated, has been experiencing nancial difficulty for some time. The company's contribution format income statement for the most recent month is given below: 10 Sales (13,300 units x $30 per unit) $ 399,000 points Variable expenses 235,400 Contribution margin 159,600 Fixed expenses 177,600 El Net operating 1055 $ (1 B , 000) 950\" Required: 1. Compute the company's CM ratio and its breakeven point in unit sales and dollar sales. IE 2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensied effort by the sales References staff, will increase unit sales and the total sales by $84,000 per month. 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 setling price, combined with an increase of $33,000 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 sales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would have to be said each month to attain a target prot of $4,600? 5. Refer to the original data, By automating, the company could reduce variable expenses by $3 per unit. However, xed expenses would increase by $55,000 each month. a. Compute the new CM ratio and the new breakeven point in unit sales and dollar sales. b. Assume that the company expects to sell 20,700 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 20,700 units)? Complete this question by entering your answers in the tabs below. 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 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 40 % Break-even point in unit sales 14,800 Break-even point in dollar sales $ 444,000Complete this question by entering your answers in the tabs below. I | Req 1 Req 2 i Req 3 H Req 4 H Req 5A H Req 5B H Req 5C ' | | The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensied effort by the sales staff, will increase unit sales and the total sales by $84,000 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.) Increases $ 9,000 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. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $33,000 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.) Revised net operating income (loss) $ 28,800 Complete this question by entering your answers in the tabs below. ' Reg 1 H Reg 2 Reg 3 Reg 4 Reg 5A H Req SB H Req 5C ' Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would have to be sold each month to attain a target prot of $4,600? (Do not round intermediate calculations. Round nal answer to the nearest whole unit.) 16,124