value: 3.00 points Problem 5-22A Basics of CVP Analysis; Cost Structure [LO5-1, LO5-3, L05-4, LO5-5, LO5-6 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing dificulty for some time. The company's contribution format income statement for the most recent month is given below Sales (12,700 units Variable expenses 20 per unit) $254,000 127,000 Contribution margin Fixed expenses 127,000 142,000 Net operating loss $ (15,000) Required: . Compute the company's CM ratio and its break-even point in both unit sales and dollar sales. CM ratio Break-even point in units Break even point in dollars 2. The president believes that a $6,700 Increase in the monthly advertising budget, combined with an t on the company's mondly net operating income or loss? (Use the inMensified effort by the sales staff. will result in an $82,000 increase in monthily sales. If the president is right what will e the oflect incremental approach in preparing your answer ) 24 S Clo 314 needs $50 O-74445 Refend