Please hep with answering questions $3,4,5$A and $5$B$.$ Thank you.

PEM, Incorporated, is experiencing financial difficulty due to erratic sales of its only product, a high$-$

capacity battery for laptop computers. The company's contribution format income statement for

the most recent month is given below:

Refer to the original data. The sales manager is convinced that a $10\%$ reduction in the selling

price, combined with an increase of $$37,000$ in the monthly advertising budget, will double unit

sales. If the sales manager is right, what will be the revised net operating income $($loss$)?$

Revised net operating income $($loss$)$

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 variable costs by

$$0\mathrm{.}60$ per unit. Assuming no other changes, how many units would have to be sold each month to

attain a target profit of $$4,000?$

Unit sales to attain target profit

Refer to the original data. By automating, the company could reduce variable expenses by $$3$ per

unit. However, fixed expenses would increase by $$59,000$ each month.

a$.$ Compute the new CM ratio and the new break$-$even point in unit sales and dollar sales.

b$.$ Assume the company expects to sell $20,200$ units next month. Prepare two contribution

format income statements, one assuming operations are not automated and one assuming

they are. $($Show data on a per$-$unit and percentage basis, as well as in total, for each

alternative.$)$