Class: Problem 5-20A MEMOFAX, INC. 1. Contribution margin ratio: Percent Total Per Unit of Sales Sales Variable expenses Contribution margin Break-even point: Sales price per unit Variable expense Fixed expense Profits Break-even point (units) Break-even point (dollars) Alternative break-even point calculation: Break-even point (units) Break-even point (dollars) 2. Incremental contribution margin: Increased sales Less increase advertising cost Increase in monthly net income3. Sales Variable expenses Contribution margin Fixed expenses Net operating loss 4. Units sold to reach target profit: Sales price per unit Unit contribution margin Fixed expenses Profits Number of units Alternative calculation: Number of units 5a. Contribution margin ratio: Percent Per Unit of Sales Sales price per unit Variable expenses Contribution margin Break-even point: Fixed expense Unit contribution margin Break-even point in unit sales Contribution margin ratio Break-even point in sales dollarsBreak-even point in sales dollars 5b. Comparative income statements: lot Automate Automated Total Per Unit % Total Per Unit % Sales Variable expenses Contribution margin Fixed expenses Net operating income