Memofax, Inc. produces memory enhancement software for computers. Soles 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: 0 erences Sales (16,580 units) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating loss 5660,000 495,000 165,000 170,000 5 (5,000) Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. (Do not round Intermediate calculations. Round your "Break-even point in units" answer up to nearest whole number) Contribution margin ratio Break-even point in units Break-even point in dollar 25% 17,000 680.000 $ o References 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 $5,4007 (Do not round intermediate calculations. Round your answer up to nearest whole number.) Un sales to attain target prom 5. Refer to the original data. By automating, the company could slash its variable expenses in half However, fixed costs would increase by $80,000 per month a. Compute the new CM ratio and the new break-even point in both units and dollars. (Do not round intermediate calculations. Round your "Contribution margin ratio" 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 sell 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 not round intermediate calculations. Round "Per Unit" and "Percentage" to 2 decimal places.) Comparative Income Statements Not Automated Total Per Unit Percentage (9) Automated Per Unit Total Parcentage (5) Sales ols 0.00 0.00 os 0.00 000 5 0 $ 0 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 Intermediate calculations. Round your answer up to nearest whole number) The point of Bence between the two options units