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Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a profit and some months showing a loss.

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Memofax, Inc. produces memory enhancement software for computers. 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 (18,000 units at $25 per unit) Less: Variable expenses $450,000 270,000 Contribution margin Less: Fixed expenses 180,000 188,000 Net operating loss s (8,000) 3. Refer to the original data. The president is convinced that a 10% reduction in the selling price, com bined with an increase of $85,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? Sales 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 $2,000? (Do not round intermediate calculations.) units Unit sales to attain target profit [

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