PEM, Incorporated, is experiencing financial difficulty due to erratic sales of ite only product, a high$-$capacity battery for laptop computers. The company's contribution format income statement for the most recent month is given below:

$\backslash$table$[[$Salod $(13,500$ unith $*$ $$20$ per unLt$)],[$Nay uabla cxponsox,$162,6],[$Contribution thangin,$188,$ by$],[$fluind geponsan,$10,$ WY:$],[$Nut eperviture lowis,Y $(12,$ GF$)]]$

Required:

L$.$ Compute the company': CM rato and tse breskeven point in unlt sales and dol ar aoles.

$2.$ The Presldent believe: $$6,200$ incresse in the monthly scivertaing bucget, combined with on intenafied effort by the sal es staff, Will incerease unlt cales and the total soles by $$90000$ per month. If the prexdent is ight, what will be the increace $($decieasel in the compony: monthly net opersting income?

$3.$ Refer to the original data. The cales manager is convinced thst a wolk eduction in the :ellhg price, combined with an increase of $838,000$ in the monthly advertsing budget, will double unt as es$.$ lithe xsiea mansger is right, whet wll be the revleed net gpereting income $($loae$)?$

$4.$ Refer to the original dsts$.$ The Morketing Deps thent think wat a foncy new escrage for the isptap compute batte y would grow salea. The new package would hcresse varab e cost: by $5070$ ger unt Ascuming no othe changes, how many unts wauld hove to be sold each month to sttain a turget profit oi S$4,200$i

$5.$ Refierto the orlgins dsts By sutomsting, the company could recuce worsble exeenaex by $$3$ per unt: Howleve, tixed expenses would incres:e by $$52000$ esch month.

a$.$ Compute the new CM notio and the new breakeven point in unt asi $\%$ snd do so as $8$ :

$6.$ Assume the company expect: to :ell $20\mathrm{.}900$ unts next month, Frepsie twio contlieution formatincome stste ments, ons tots $,$ for esch a te native.$)$

a$.$ Woud you necommend the compsny sutonste ts operstion: $($Axaming thst the comprny expects to :ell $20\mathrm{.}900$ unlt??

Complete this question by entering your answers in the tabs below.

Morautrad $1$

Tallilititi $4$

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Tiatumfilit ay

erterca as $23.$

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