Memofax, Inc. produces memory enhancement software for computers. Sales have been very erratic, with some months showing a prot and some months showing a loss. The company's contribution format income statement for the most recent month is given below: sales (18,566 units) $ 748,300 Less: Variable expenses 513,333 Contribution margin 222,800 Less: Fixed expenses 231.333 Net operating loss 5 (91333) Required: 1. Compute the company's CM ratio and its breakeven point in both units and dollars. {Do not round intermediate calculations. Round you: "Break-even point in units\" answer up to nearest whole numberz} Contribution margin ratio Breakeven point in units Breakeven point in dollars 9. The sales manager feels that an $21,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $135,000 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 9% reduction in the selling price, combined with an increase of $75,000 in the monthly advertising budget, will double unit sales. Should the company make these changes? 0 Yes 0 N0 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 prot of $5,800? [Do not round intermediate calculations. Round your answer up to nearest whole number.} 5. Refer to the original data. By automating, the company could slash its variable expenses in half. However, xed costs would increase by $83,600 per month. a. Compute the new CM ratio and the new breakeven point in both units and dollars. {Do not round intermediate calculations. Round your "Contribution margin ratio'l answer to 2 decimal places. Round your "Break-even point" answers up to nearest whole number.) Contribution margin ratio Break-even point in units Break-even point in dollars b. Assume that the company expects to selt 25,000 units next month. Prepare two contribution format income statements: one assuming that operations are not automated, and one assuming that they are. {Do n01. round intermediate calculations. Round "Per Unitll and "Percentage\" to 2 decimal pieces.) c. This part of the question is not part of your Connect assignmenL d. What is the point of indifference between the two options? [Do not round intermediate calculations. Round your answer up to nearest whole number.) _ um