Please help me with question 4 and 5 only. Thank you! **Financial Analysis and Decision Making for High-Capacity Battery Sales**Due to fluctuating sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial challenges recently. Below is the company's contribution format income statement for the most recent month:```Sales (13,400 units x $20 per unit) $268,000Variable expenses 160,800Contribution margin 107,200Fixed expenses 119,200Net operating loss $(12,000)```### Required Analysis1. **Compute the company's CM (Contribution Margin) ratio and its break-even point in unit sales and dollar sales.**2. **Impact of Increased Advertising Budget:** - The president believes that a $6,900 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and total sales by $81,000 per month. Determine the increase (decrease) in monthly net operating income (NOI).3. **Advertising & Price Reduction Strategy:** - Based on original data, the sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $33,000 in the monthly advertising budget, will double unit sales. Calculate the revised net operating income/loss if the sales manager's assumption is correct.4. **Introducing New Packaging:** - Refer to the original data. A new packaging design, costing $0.70 per unit, is proposed by the marketing department to boost sales. Compute the number of units that need to be sold next month to attain a target profit of $4,300, assuming no other changes.5. **Automation Impact Analysis:** - By automating, variable expenses could be reduced by $3 per unit, but fixed expenses would increase by $58,000 each month. Using the original data: a. Compute the new CM ratio and the new break-even point in units and dollar sales. b. Assume the company expects to sell 20,600 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. c. Recommend whether the company should automate its operations, assuming the company expects to sell 20,600 units.### Graphical and Tabular Data Explanation- **

Since, you have specifically asked for part 4 and 5, so we will answer those parts for you.

Due to erratic sales of Its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experlencing financial difficulty for some time. The company's contribution format Income statement for the most recent month is given below: Sales (13,400 units x $20 per unit) variable expenses Contribution margin Fixed expenses $ 268,000 160,800 107, 200 119, 200 $ (12,000) Net operating loss Requlred: 1. Compute the company's CM ratlo and Its break-even polnt in unit sales and dollar sales. 2. The president belleves that a $6,900 Increase In the monthly advertising budget, combined with an Intensified effort by the sales staff, will Increase unit sales and the total sales by $81,000 per month. If the president is right, what will be the Increase (decrease) In the 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 $3,000 In the monthly advertising budget, will double unit sales. If the sales manager Is right, what will be the revised net operating Income (loss)? 4. 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 packaging costs by $0.70 per unit. Assuming no other changes, how many units would have to be sold each month to attaln a target profit of $4,300? 5. Refer to the origlinal data. By automating, the company could reduce varlable expenses by $3 per unit. However, fixed expenses would Increase by $56,000 each month. a. Compute the new CM ratlo and the new break-even polnt In unit sales and dollar sales. b. Assume that the company expects to sell 20,600 unlts next month. Prepare two contributlon 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 20,600 units)?