Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratlc, 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: Required: 1. Compute the company's CM ratlo and its break-even point in both unlts and dollars. (Do not round Intermedlate calculatlons. Round your "Break-even polnt In unlts" answer up to nearest whole number.) 2. The sales manager feels that an $15,000 Increase in the monthly advertising budget, combined with an Intensified effort by the sales staff, will result in a $105,000 increase In monthly sales. If the sales 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.) 3. Refer to the original data. The president is convinced that a 6% reduction In the selling price, combined with an Increase of $25,000 In the monthly advertising budget, will double unlt sales. Should the company make these changes? Yes No 4. Refer to the original data. The company's advertising agency thinks that a new package would help sales. The new package belng proposed would lincrease 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 $5,200 ? (Do not round intermediate calculations. Round your answer up to nearest whole number.) 5. Refer to the origlinal data. By automating, the company could slash its varlable expenses In half. However, fixed costs would increase by $66,500 per month. a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round intermedlate calculations. Round your "Contribution margin ratio" answer to 2 decimal places. Round your "Break-even polnt" answers up to nearest whole number.) b. Assume that the company expects to sell 20,000 units next month. Prepare two contributlon 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.) c. This part of the question is not part of your Connect assignment. d. What is the point of Indifference between the two options? (Do not round intermedlate calculations. Round your answer up to nearest whole number.)