DE HRPD_X DDD HRPD_7 X GSentenceD RESEARX M Inbox ( X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 9 - Chapter 8 i Saved Help Save & Exit Submit Check my work 2 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: 10 points Sales (18, 500 units) $ 740,000 Less: Variable expenses 518,000 O Contribution margin 222,000 Less: Fixed expenses 231, 600 eBook Net operating loss $ (9,000) + Print Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. (Do not round intermediate calculations. Round your "Break-even point in units" answer up to nearest whole number.) References Contribution margin ratio Break-even point in units Break-even point in dollars 2. The sales manager feels that an $21,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $135,000 increase in monthly sales. If the sales manager is right, what will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer.) ED Mc Hill Type here to search EN 10 C Clear 1 6 0 04X ENG 5:40 PM 11/9/2022DE HRPD_X DDD HRPD_7 X GSentence RESEARX M Inbox ( X _ Untitled x E Untitled x @ Wordtu X D2L McGrav X Question X THINK X Course x + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 9 - Chapter 8 i Saved Help Save & Exit Submit Check my work 2 2. The sales manager feels that an $21,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $135,000 increase in monthly sales. If the sales manager is right, what will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer.) 10 points O Book + Print References 3. Refer to the original data. The president is convinced that a 9% reduction in the selling price, combined with an increase of $75,000 in the monthly advertising budget, will double unit sales. Should the company make these changes? Yes No 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being posed would increase packaging costs by $0.5 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $5,800? (Do not round intermediate calculations. Round your answer up to nearest whole number.) Unit sales to attain target profit units X 5. Refer to the original data. By automating, the company could slash its variable expenses in half. However, fixed costs would increase OneDrive by $83,600 per month. Screenshot saved a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round intermediate calculations. Daund was AntrilliAn marin ratiall anmillar on 2 darimal alarAr DAlind walls arabs Avan mainall anditAND IIn In MAGRANT WALA The screenshot was added to your OneDrive. Mc Grav Type here to search O EN 10 C Clear - 5 04X ENG 5:40 PM 11/9/2022DE HRPD_X DDD HRPD_7 X GSentenceD RESEARX M Inbox ( X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 9 - Chapter 8 i Saved Help Save & Exit Submit Check my work 2 5. Refer to the original data. By automating, the company could slash its variable expenses in half. However, fixed costs would increase by $83,600 per month. 10 points a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round intermediate calculations. Round your "Contribution margin ratio" answer to 2 decimal places. Round your "Break-even point" answers up to nearest whole number.) O Book + Contribution margin ratio Print Break-even point in units Break-even point in dollars References 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. (Do not 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 (/0) Sales ED Mc Hill Type here to search EN 10 C Clear 1 6 0 04X ENG 5:40 PM 11/9/2022