Koy Storage Inc. ptoduces USB dives, Sales have been very erratic, with some months showing a profit and some months showing a lass. The compary's contribution format income statement for the most recent month is given beiow: 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.) 2. The sales manager feels that an $35,100 inciease in the monthly advertising budget, combined with an intensified effort by thie staff, will restilt in a $10,000 increase in monthly sales, If the sales manager is fight, what wil be the effect on the company/s montinly net operating income or loss? (Use the inciemental approach in preparing your answet) 3. Refer to the original data. The president is convinced that a 10%, reduction in the selling pice, combined with an increase of $100,500 in the monthly advertising budget. will double unit sales. Should the company make these changes? Yes No 4. Pefer 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 $1.0 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4.520 ? (Do not round intermediate colculations. Round your answer up to nearest whole numbec) 5. Refer to the orlginal data. By automating, the company could slash its variable expenses in hall. However, fixed costs would increase by $118.500 per month. o. Compute the new CM ratio and the new breakeven point in both units and dollars. (Do not round intermediote calculations. Round your "Contribution margin ratio" onswer to 2 decimol ploces. Round your "Break-even point" answers up to nearest whole number.) b. Assume that the company expects to sell 20.100 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 Unir" and "Percentoge" to 2 decimal ploces.) c. This part of the question is not part of your Connect assignment. d. What is the point of indifierence between the two options? (Do not round intermediate calculations. Round your snuwer ipg to nesrest whole number.)