5. Refer to the original data. By automating, the company could slash its variable expenses in half. However, fixed costs would increase by $60,500 per month. a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round intermediate calculations. Round "Contribution Margin Ratio" to 2 decimal places.) Contribution margin ratio Break-even point in units Break-even point in dollars b. Assume that the company expects to sell 25,000 units next month. Prepare two contribution format income statements: one assuming that operations are not automated, and one assuming that they are. ot round intermediate calculations. Round "Per Unit" and "Percentage" to 2 decimal places.) Comparative Income Statements Not Automated Automated Total Per Unit Percentage Total Per Unit Percentage Sales Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (18,000 units at $25 per unit) Less: Variable expenses $450,000 270,000 Contribution margin Less: Fixed expenses 180,000 188,000 Net operating loss (8,000)