er 5 HW Set 2 Help Save & Exit Submit Check my work 4 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc, has been experlencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below le (19,500 unite $30 per unie) 585,040 409,580 Conte ibation margin Pixed expenses Net operating loes beferencerRequired: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales 2. The president believes that a $6,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $80,000 increase in monthly sales. H the president is right, what will be the increase (decrease) in the company's monthly net operating income? 3. Refer to the onginal data. The sales manager is convinced that a 10% reduction in the seling price, combined with an increase of $60000 in the monthly advertising budget, will double unit sales, If the sales manager is right, what will be the revised net operating Income (oss)? Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sawes. The new package would increase packaging costs try 75 cents per unit. Assuming no other changes, how many unlts would have to be sold each month to attain a target profit of $9,750 5. Refer to the original deta. Dy automating, the company could reduce variabie expenses by $3 per unt However, fwed expenses wouid increase by $72,000 each month a. Compute the new CM ratio and the new break -even point in unit sales and dolar sales b Assume that the company espects to set 26,000 units next month Prepere two contributon format income statements, one Prev 44 EE Next MacBook Pro Q E Ul otion command command option r 5 HW Set 2 Help Save & Exit Submit Check my work would Increase by $72,000 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 26,000 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 altemative) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 26,000)? Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4 Req SA Rea 58 Rea sC Compute the company's CM ratio and its break-even point in unit sales and dollar sales. (Do not round intermediate calculations.) CM ratio point in Break-even point in dollar MacBook Pro 8 WE R File Edit View History Bookmarks Window Help ? 94%.- Thu 9:31 AM Chapter 5 HW Set 2 Help Seve& Exit Submit Chack my work 4 uns ext monu. Prepare two controuton rormat ncome statements, one D. Assume enat e company expects to se suu uni assuming that operations are not automate one as in total, for each altemative) c Would you recommend that the companyomate its operations JAssuming that the company expects to sell 26,000? a assuming that they are. (Show data on a per unit and percentage basis, as well Complete this question by entering your inswers in the tabs below. Req i Req 2 Req 3 Req 4 with an Refer to the orniginal data. The sales manager is increase of $60,000 in the monthly advertising budget, wil double unit sales. If the sales manager is right, what will be the conviced that a 10% uction in the seling price, contined w income (Closs)? (Losses should be entered as a negative value.) Prev 4 of 4Next MacBook Pro 8 command optio e Edit View Histo ory Bookmarks Window Help hapter 5 HW Set 2 Help Seve&Eit Submit Check my wek o Assume tnat tne company expeces 1o se .uus unns as in total, for each altemative. montn, Prepare wo conerouion are not auto ed andssuming that they are.(Show deta on a per unit and percentage basis, as well recommend that the con y automate its operations (Assuming that the company expects to sell 26,. Complete this question by entering your answers in the tabs below Req 1 Req 2 Reg 3 Req 4 Rea 58 Req Sc Refer to the onginal 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 75 cents per unit. Assuming no other changes, how month to attain a target profit of $9,7507 (Do not round inermediate calicuilations.) many C Prev 4of 4 Next MacBook Pro commandoption Chapter 5 HW Set 2 Help Save&Eait Submit o. Assume nat tne company expects to seu cojuuu unns next mon repare that operations are not automated and one assuming that they are.(Show data on a per unit and percentage besis, as we as in total, for each attema c Would you recommend ts ne company automate ts operations (Assuming that the company expects to sell 26,000 35 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Rea SA Refer to the orginal data. By automating, the company could reduce variable expenses by $3 per unit expenses would increase by $72,000 each month. Compute the new CH rate and the new break-even point in unit saies and Howevec Rxed Break-even point in Break-even point in C Prev 4 f 4 Next MacBook Pro commandop Fle Edit View History Bookmarks Window Help Chapter 5 HW Set 2 Help Save &ExiltSubr Check my work 4 Req 1 Req 2 Req 4 Refer to the original data. By autemating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would month. Assume that the company expects to sell 26,000 units next month, Prepare two contribution format income are not automated and one assuming that they are. (Show data on a per unit and percentage as well as in total, for each aternative.) Not Automated