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 companys contribution format income statement for the most recent month is given below

Sales (19,500 units at $40 per unit)	$	780,000
less: Variable expenses		585,000
Contribution margin		195,000
LEss: Fixed expenses		206,000
Net operating loss	$	(11,000)

Assume that the company expects to sell 27,000 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 Unit" and "Percentage" to 2 decimal places.)

b. Assume that the company expects to sell 27,000 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 Unit" and "Percentage" to 2 decimal places Comparative Income Statements Not Automated Automated Total Per Unit Percentage Total Per Unit Percentage Sales c. Not available in Connect. Show transcribed image text