Key Storsge Inc. produces USB drhes. Soles hove been very errst'c, with some months showing s profit snd some months shawing s

los: The compony's contribution formst income statement for the moat recent month is glven below:

Requlred:

Compute the compeny's CM rstio snd its break$-$even point in both units and dollars. $($Do not round intermedlate celculations.

Round your "Bresk$-$even point in unlts" answer up to nearest whale number.$)$

Answer is complete but not entirely correct.

The ssles mansger feels that on $$36,200$ incresse in the monthly schertlaing budget, combined with sn intenatied effort by the

so es staff, will reaut in o $$10,000$ incresse in monthly ases. If the ssies manoger la right, what will be the effect on the compony's

monthly net opersting lincome or loss? $($Use the incrementsl spprosch in prepsing your enswer.$)$

Answer is complete but not entirely correct.

Refier to the originsi dsts$.$ The prealdent is conwinced that a $10\%$ reduction in the selling price, combined with on increase

of $$106,000$ in the monthly odvertsing budget, will double unt asiea. Should the compony moke these changes?

Yes

No

proposed would incresse pockoging coata by $$20$ per unt. Asauming no other changea, how msny units would have to be sold esch

month to eam a profit of $$4,740?($Do not round Intermediate calculations. Round your answer up to nearest whole number$)$

Refer to the ariginel dats. By outomating, the compony could a oah its variable expenses in half. However, fixed costs would increase

by $$124,000$ per month.

a$.$ Compute the new CM rato and the new break$-$even point in both units and dol ara. $($Do not round Intermediate calculations.

Round your "Contributian margin ratio" answer to $2$ decimal places. Round your "Bresk$-$even point" answers up to nesrest whole

number.$]$

b$.$ Assume thet the compsny expects to sell $21,200$ units next month. Prease two contribution formst income statements: one

sasuming that operations sre nat sutomsted, and one ssauming that they are. $($Do not round intermediste calculations. Round $\text{'}$Pe

Unlt" and "Percentage" to $2$ decimal places.$)$

c$.$ This port of the question is nat part of your Connect asignment.

d$.$ What is the point of indifference between the two options? $($Do not round intermediate calculations. Round your answer up to

nearest whole number. NO ESSAYS, PLEASE ONLY ANSWERS