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Memofax, ine. produces memory enhancement software for computers. Sales have been very etratie, with some months showing a profit and some months showing a loss.
Memofax, ine. produces memory enhancement software for computers. Sales have been very etratie, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent morith is given below Pequired Heund your "Bresieven peint in units" onswer up is eesrest wisle rumberf 3. Refer to the original data. The president is convinced that a 7% reduction in the selling price, combined with an increase of $47.000 In the momthly advertising budget. will double unit sales. Should the company make these changes? Yes No 4. Refer to the original data. The compary's adverising agency tisinks that a new psckege would help sales. The new paciage being proposed would increase packaging costs by $0.5 per unt. Assuming no other changes, now many units would have to be sold each month to earn a profit of 54.800? (Do not round intermediate calculatient. Round your answer up to nearest whole numberi. 5. Refer to the origins dete. Ey automating, the company could siath its veriab e expenses in half Howevec fied costs would incresse by 596.400 per month. 6. Conpute the new CM ratio and the new deaketeven boint in both units and dolia/s, ido net round intermediate caiculations. Pound your "Contribution, marpin rote" smawer to 2 decimal pleces. Round your "Ereak-evert polit" anwers op to natert whole (thmberi) b. Assume that the company expects to sell 20,000 -units next month. Prepare two contribution farmat income statements: one assuming that operations are not sutomated, and one assuming that they are. (De not round intermediate caleulations, Pound "Par Unk" and "Percentege" to 2 declmal places.) e. This sert of the dutution is not pert of your Connect sss givient. Aeartat vatiole numaer
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