Please show step by step process so answers will be clearly matched to questions. Thank you.

Memofax, Inc. produces memory enhancement software for computers. Sales 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. Sales (12,000 units at $20 per unit 240,000 Less: Variable expenses 144,000 96,000 Contribution margin 101,000 Less: Fixed expenses (5,000) Net operating loss Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. Contribution margin ratio Break-even point in units Break-even point in dollars 2. The sales manager feels that an $9,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $75,000 increase in monthly sales. lfthe sales manager is right, what will be the effect on the company's month net operating income or loss? (Use the incremental approach in preparing your answer.)