Memofax, Inc., produces memory enhancement kits for fax machines. 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: Sales (13,000 units at $40 per unit) Variable expenses $520,000 364,000 Contribution margin Fixed expenses 156,000 174,000 Net operating loss S (18,000) Required 1. Compute the company's CM ratio and its break-even point in both units and dollars CM ratio Break-even point in units Break-even point in dollars 2. The sales manager feels that an $7,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $70,000 increase in monthly sales. If the sale:s 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.) (Input the amount as a positive value.) (Click to select) 3. Refer to the original data. The president is convinced that a 10% reduction in the selling price, combined with an increase of $35,000 in the monthly advertising budget, will double unit sales. What will the nevw contribution format income statement look like if these changes are adopted? (Input all amounts as positive values except losses which should be indicated by minus sign.) Contribution Income Statement (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) 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 $0.50 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $5,000? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Sales units