Sales (12,900 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 258,000 129,000 129,000 144,000 $ (15,000) 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 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 20,200 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 20,200)? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req SA Req 58 Req 5C Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Round-CM ratio" to the nearest whole percent and other answers to the nearest whole number) CM ratio Break-even point in unit sales Break-even point in dollar sales Req 4 Req 5B Req 1 Req 2 Req 3 Req 4 Req 5A Req S8 Req SC Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month. Assume that the company expects to sell 20,200 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.) (Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.) Show less A PEM, Inc Contribution Income Statement Not Automated Automated Per Per Total Total Sales Variable expenses Contribution margin Fixed expenses Net operating income 0 |% 0 |% K Req 5A