Key storage Inc. produces USB drives. Sales have been very erratic, with some months showing profit and some months showing a loss. The companys contribution format income statement for the most recent month is given below: sales (21,800 units) $545,000 less: variable expense $ 348,800 contribution margin 196,200 less: fixed expense 218,000 net operating income $21,800 compute the companys CM ratio and its break-even point in both units and dollars. 2. The sales manager feels that an $36,800 increase in the monthly advertising budget., combined with an intensified effort by the sales staff, will result in a $10,000 increase in monthly sales. If the sales manager is right. what will be the effect on the companys monthly net operating income or loss?( Use the incremental approach to answer) 3.Refer to the original data, The president is convinced that a 10% reduction in the selling price, combined with an increase of $109,000 in the monthly advertising budget, will double unit sales. Should the company make these changes? Yes or 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 $10 per unit. Assuming no other changes, How many units would have to be sold each month to earn a profit of $4,860? 5. Refer to the original data, By automating the company could slash its variable expenses in half. However, fixed costs would increase by $127,000 per month. a. compute the new CM ratio and the new break-even points in both units and dollars. b.Assume the company expects to sell 21,800 units next month. Prepare 2 contribution format income statements : one assuming that operations are not automated and one assuming they are. c. What is the point of difference between the 2 options