I need help with question 4 and 5d

Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a it and some months showing a loss, The company's cont mpany's contribution format income statement for the most recent month is given below 10 Sales (17, eee units) ariable expenses contribution margin Less: Fixed expenses 182,603 Net operating loss S (6, 809) Required: 1. Compute the company's CM ratio and its break even point in both units and dollars. (Do not round In Round your "Break-even point In units" answer up to nearest whole number.) Answer is complete and correct. Contribution margin ratio 25 6 26 Break-even point in units 18.000 Break-even point in dollars $ 432,000 2. The sales manager feels that an $18,000 increase in the monthly advertising budget. combined with an intensified effort by the aff, will result in a $120.000 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) Answer is complete and correct. Increase in monthly net operating income 5 12.000 . Refer to the original data. The president is convinced that a 7%% reduction in the selling price, combined with an increase of $37,000 in the monthly advertising budget. will double unit sales. Should the company make these changes? Yes O No 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package being proposed 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 $5.500? (Do not round intermediate calculations. Round your answer up to nearest whole number.) Answer is complete but not entirely correct. Und sales to attain target p 20.630 units 3. Refer to the original data. By automating, the company could slash its variabl s in half. However, fixed costs would increase by $45.000 per month. a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round interning und Intermediate calculations. Round your "Contribution margin ratio" answer to 2 decimal places. Round your "Break-even point" answers up to nearest whole number.) Answer is complete and correct. Contribution margin ratio 62.50% Break even point in units 10.200 Break-even point in dollars 244,800 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 automate not automated, and one assuming that they are. (Do not round Intermediate calculations. Round "Per Unit and "Percentage" to 2 decimal places.) Answer is complete and correct. Comparative Income Statements Not Automated Automated Total Per Unit Total Per Unit Percentage Sales $ 800.000 5 24.00 100.00 5 600.000 $ 24.00 100.00 Less: Variable expenses 450,000 75.00 225.000 19.00 37 50 Contribution margin 150,000 5 6.00 25 00 375 000 $ 15.00 62.50 Less Fixed expenses 108.000 153.000 Net operating income 5 42,000 $ 222.000 . This part of the question is not part of your Connect assignment d. What is the point of indifference b two options (Do not rour ons. Round your answer up to nearest whole number.) Answer is complete but not entirely correct. The point of ind 130.000 3 units