PLEASE DO NOT DO IF YOU DON"T KNOW HOW TO DO IT$...$Key Storsge Inc. produces USB drtwes. Soles hove been very errstic, with some months showing s profit snd some montha showing s

los. The compony's contribution format income statement for the moat recent month is glven below:

Requlred:

Compute the compeny's CM ratio snd th break$-$even point in both un'ta and dollars. $($Do not round intermediate calculations.

Round your "Bresk$-$even point in units" answer up to nearest whole number.$)$

Answer is complete but not entirely correct.

$2$ The ssles mansger feels thst on $$36,200$ incresse in the monthly sdvertaing budget, combined with sn intenatied effort by the

soles staff, will resut in s $$10,000$ incresse in monthly sales. If the ssles manoger is right, what will be the effect on the compony's

monthly net opersting income or los:? $($Use the Incrementsi spprosch in prepsring your answer.$]$

Answer is complete but not entirely correct.

Refer to the original dsta. The preaident is convinced that a $10\%$ reduction in the selling price, combined with an increase

of $$106,000$ in the monthly odvertsing budget, will double unt sales. Should the compony make these changes?

Ye: $O$

No

Refer to the original dsta. The compony's advertiaing sgency thinks that o new pscksge would he'p sslea. The new pocksge being

proposed would incresse pockoging costs by $$10$ per unt. Assuming no other chsinges, how msny units would have to be sold esch

month to earn a profit of $$4,740?($Do not round Intermedlate calculstions. Round your snswer up to nesrest whole number.$)$

Refier to the ariginal dsta. By outamating, the compsny could a bah its varibale expense: in half. However, fixed costs would increase

by $$124,000$ per month.

a$.$ Compute the new CM rato snd the new breskeven point in both units and dolers. $($Do not round intermedlate calculstions.

Round your "Contribution margin ratio" answer to $2$ decimal places. Round your "Bresk$-$even point" answers up to nearest whole

number.$].$

b$.$ Asaume thet the compsny expects to sell $21,200$ units next month. Prease two contribution format income statements: one

sasuming thst operations sre nat autamated, sind one sasuming that they are. $($Do not round Intermedlate calculations. Round 'Per

Untt" snd "Percentage" to $2$ decimal places.$)$

$(3)$ Answer is not complete.

c$.$ This port of the question is nat port of your Connect asignment.

d$.$ What is the point of Indifference between the two options? $($Do not round Intermediate calculations. Round your answer up to

nearest whole number.