Hello I need help with Req 5A and 5B. Thank you ckboard: X6 Question 9 -Solved: Lucid x 61Bb Week 3: 1/24 XBb 1X A PDF to Word XMagaducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportalmework Problems iSaved2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the salesstaff, will increase unit sales and the total sales by $80,000 per month. If the president is right, what will be the increase (decrease) inthe company's monthly net operating income?3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of$32,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operatingincome (loss)?4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would growsales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would haveto be sold each month to attain a target profit of $4,300?5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenseswould increase by $58,000 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 20,600 units next month. Prepare two contribution format income statements, oneassuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, aswell as in total, for each alternative.)c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,600 units)?Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4Req 5AReq 5BReq 5CRefer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixedexpenses would increase by $58,000 each month. Compute the new CM ratio and the new break-even point in unit sales anddollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should beentered as "23") and other answers to the nearest whole number.)Show less ACM ratioBreak-even point in unit salesBreak-even point in dollar salesReq 4Req 5B ckboard: X6 Question 9 -Solved: Lucid x 61Bb Week 3: 1/24 XBb 1X A PDF to Word XMagaducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportalmework Problems iSavedwould increase by $58,000 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 20,600 units next month. Prepare two contribution format income statements, oneassuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, aswell as in total, for each alternative.)c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,600 units)?Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4Req 5AReq 5BReq 5CRefer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenseswould increase by $58,000 each month. Assume that the company expects to sell 20,600 units next month. Prepare twocontribution format income statements, one assuming that operations are not automated and one assuming that they are. (Showdata 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 APEM, IncorporatedContribution Income StatementNot AutomatedAutomatedTotalPer UnitTotalPer Unit0 $$

Question

Hello I need help with Req 5A and 5B. Thank you ckboard: X6 Question 9 -Solved: Lucid x 61Bb Week 3: 1/24 XBb 1X A PDF to Word XMagaducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportalmework Problems iSaved2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the salesstaff, will increase unit sales and the total sales by $80,000 per month. If the president is right, what will be the increase (decrease) inthe company's monthly net operating income?3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of$32,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operatingincome (loss)?4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would growsales. The new package would increase packaging costs by $0.70 per unit. Assuming no other changes, how many units would haveto be sold each month to attain a target profit of $4,300?5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenseswould increase by $58,000 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 20,600 units next month. Prepare two contribution format income statements, oneassuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, aswell as in total, for each alternative.)c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,600 units)?Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4Req 5AReq 5BReq 5CRefer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixedexpenses would increase by $58,000 each month. Compute the new CM ratio and the new break-even point in unit sales anddollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should beentered as "23") and other answers to the nearest whole number.)Show less ACM ratioBreak-even point in unit salesBreak-even point in dollar salesReq 4Req 5B >< Prev9 of 10Next > ckboard: X6 Question 9 -Solved: Lucid x 61Bb Week 3: 1/24 XBb 1X A PDF to Word XMagaducation.com/ext/map/index.html?_con=con&external_browser=D0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportalmework Problems iSavedwould increase by $58,000 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 20,600 units next month. Prepare two contribution format income statements, oneassuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, aswell as in total, for each alternative.)c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,600 units)?Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4Req 5AReq 5BReq 5CRefer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenseswould increase by $58,000 each month. Assume that the company expects to sell 20,600 units next month. Prepare twocontribution format income statements, one assuming that operations are not automated and one assuming that they are. (Showdata 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 APEM, IncorporatedContribution Income StatementNot AutomatedAutomatedTotalPer UnitTotalPer Unit0 $$< Req 5AReq 5C >< Prev9 of 10Next >

Accepted Answer

CM ratio=Selling Price-Variable Cost per unitSelling Price×100
Break-even point in unit sales=Total…