Question: i only need help with 4 &5!! Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial

 i only need help with 4 &5!! Due to erratic sales

i only need help with 4 &5!!

Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below Sales (12,800 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 256,000 153,600 102,400 114,400 (12,000) quired Compute the company's CMratio and its break-even point in unit sals and dollar sales. e preside D jeves tha a 6,100 inc sin the m-thly ad isb mbirwith in 83 ing ase ip 1onth sale f t dent is t, wh the inc (decree) in the coipar 3 fer to le orig al data the sa s manags comnced that0% uction i leseng priccom ine withincre 31the morlyertisingba doubleit sal if the sama ger is rig incom oss)? 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 0.80 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,700? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $53,000 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 21,000 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 alternative.) C. Would you recommend that the company automate its operations (Assuming that the company expects to sell 21,000)? will be ure revis eratin

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