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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales variable expenses Contribution margin Fixed expenses Net operating income $ 2, 240,000 1,120,00 1,120,000 160,00 $ 960,eee Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $48,000 and fixed expenses do not change, how much will net operating Income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-6. Assume the president expects this year's sales to increase by 16% Using the degree of operating leverage from last year, what 5. The sales manager is convinced that a 13% reduction in the selling price.combined with a $65.000 Increase in advertising, would Increase this year's unit sales by 25% 3. If the sales manager is night, what would be this year's net operating income of his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.30 per unit. He thinks that this move.combined with some increase in advertising, would increase this year's sales by 25% How much could the president increase this year's advertising expense and stil earn the same $960.000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg1 R2 Rega RAGA He48 Reg 5A Reg 58 Red What is the product's CM ratio? Mato Reg 2 > Feather Friends, Inc, distributes a high-quality wooden birdhouse that sells for $80 per unit. Vortable expenses are $40.00 per unit . and fixed expenses total $150,000 per year. Its operating results for last year were as follows: sales Variable expenses Contribution margin Fixed expenses Net operating incone $ 2, 240, eee 1,120,000 1,120,000 160,000 $ 960,00 . Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales 3. If this year's sales increase by $48,000 and fixed expenses do not change, how much wil net operating income increase? 4-a What is the degree of operating leverage based on last year's sales? 4-6. Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 13% reduction in the selling price.combined with a $65,000 Increase in advertising, would Increase this year's unit sales by 25% 1. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? bit the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.30 per unit. He thinks that this move.combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $960.000 net operating income as last year? Complete this question by entering your answers in the tabs below. Rad 1 2 Reg 4 Reg 40 PSA Red 50 Ray 5 Use the CM ratio to determine the break-even point in dollar sales. Do not round intermediate calculations.) Breve peint in dollares Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales Variable expenses contribution sargin Fixed expenses Net operating income 5 2,240,000 2,120.ee 1,120,00 16e eee $ 960,cee Required: Answer each question Independently based on the original data: 1 What is the products CM ratio? 2. Use the CM ato to determine the break even point in dollar sales. 3. If this year's sales increase by $48.000 and fixed expenses do not change, how much will net operating income increase? 4- What is the degree of operating leverage based on last year's sales? 4-6 Astume the president expects this year's sales to increase by 16% Using the degree of operating leverage from last year, what 5. The sales manager is convinced that a 13% reduction in the seling price, combined with a $65.000 increase in advertising, would increase this year's unit sales by 25% a. Ir the sales manager is right, what would be this year's net operating income of his ideas are implemented? bit the sales manager's ideas are implemented, how much wil net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $230 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $960.000 net operating income as last year? Complete this question by entering your answers in the tabs below. Web Reg A Red 48 RASA Res 38 Reg 6 If this year's sales increase by $48.000 and forced expenses do change, how much will net operating income increase? try Feather Friends, Inc, distributes a high-quality wooden birdhouse that sells for $80 per unit Variable expenses are $40.00 per unit and the expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses contribution margin Fixed senses het operating income $ 2,240,000 1,120,000 1,120,00 160,000 5 960, ce Required: Answer each question independently based on the original data 1 What is the product's CM rano 2. Use the CM ato to determine the break-even point in dollar sales 3. If this year's sales increase by $48.000 and foed expenses do not change, how much will net operating income increase? 4-5. What is the degree of operating leverage based on last year's sales? 46 Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year what 5 The sales manager is convinced that a 13% reduction in the sening price.combined with a $65,000 increase in advertising, would increase this year's unit sales by 25% at the sales manager is night, what would be this year's net operating income if his ideas are implemented? Dit the sales manager's ideas are implemented, how much wil net operating income increase or decrease over tast year The president does not want to change the selling price instead, he wants to increase the sales commission by $2.30 per unit. He think that this move.combined with some increate in advertising would increase this year's sales by 25% How much could the president increase this year's advertising expense and still earn the same $960.000 net operating income as last year? Complete this question by entering your answers in the tabs below. Hent 2 Ro SA Reg 50 Reg. what the degree of operating leverage based on last year's sales (Round intermediate calculation and final answer to 2 Feather Friends, Inc., distributes a high quality wooden birdhouse that sells for $80 per unit Variable expenses are $40.00 per unit. anded expenses total $160,000 per year. Its operating results for last year were as follows: Sales variable ripenses Contribution margin el espeses Net Operating income 5 2,240,000 1,120,000 1,120,000 160,000 5 960,000 Required: Answer each question independently based on the original data: What is the products CM rato? 2. Use the CMD to determine the break-even point in dollar sales 3. Ir this year's sales increase by $48.000 and foued expenses do not change, how much wil net operating income increase? 4 What is the degree of operating leverage based on last year's sales? 46 Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year, what 5 The swes manager is convinced that a 13% reduction in the ceiling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25% all the sales manager is night what would be this year's net operating income of his ideas are implemented? by the sales manager's ideas are implemented, how much will net operating income increase or decrease over fast year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $230 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25% How much could the president increase this year's advertising expense and still earn the same $960.000 net operating income as fast year? Complete this question by entering your answers in the tabs below. Ros Res Reg 4 Hea HA Assume the president expects this year's sales to increase by 10%. Using the degree of operating leverage from last year herente increase in net operating income will the company this year? (Round intermediate calculations and Feather Friends, Inc. distributes a high-quality wooden birdhouse that sells for $80 per unit Vartable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales variable expenses Contribution margin Fixed expenses het operating income $ 2,240,000 1. 120.000 1,120,000 160,000 560,000 Required: Antwer each question independently based on the original data: 1 What is the product's CM ratio? 2. Use the CM ato to determine the break-even point in dollar sales 3. If this year's sales increase by $48,000 and forced expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-6. Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 13% reduction in the selling price.combined with a 565,000 increase in advertising, would increase this year's unit sales by 25% a If the sales manager is nght, what would be this year's net operating income this ideas are implemented? b. It the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.30 per unit. He thinks that this move.combined with some increase in advertising, would increase this year's sales by 25% How much could the president increase this year's advertising expense and still earn the same $900,000 net operating Income as last year? Complete this question by entering your answers in the tabs below. H2 RA 4 Rea SA Req 50 Reg 6 The sales manager is convinced that a 13. reduction in the selling price. Combined with a $65,000 increase dvertising would increase this year's unit sales by 25% of the sales manager is right, what would be this year's net operating income he ideas are implemented (Do not round intermediate calculations Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Vartable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales Variable expenses contribution margin Fixed expenses Net operating income $ 2,240,000 1-120,000 1,120,000 160.000 5 960,000 Required: Answer each question independently based on the orginal data 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales 3. If this year's sales increase by $48,000 and foued expenses do not change, how much will net operating income increase? 4 What is the degree of operating leverage based on last year's sales? 46 Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year, what 5 The sales manager is convinced that a 13% reduction in the setting price combined with a $65,000 increase in advertising, would increase this years unit sales by 25% of the sales manager is right, what would be this year's net operating income this ideas are implemented? bif the sales manager's ideas are implemented, how much wil net operating income increase or decrease over last year? The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.30 per unit. He that this move.combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $960,000 net operating Income as last year? Complete this question by entering your answers in the tabs below. RA Hess Rego The sales manager convinced that a 13% reduction in the selling price, combined with a $65.000 increase in advertising would increase this year's tes by 25 the sales manager's ideas are implemented, how much will net operating come increase or decrease over last year (ingative amounts should be input with a min.)

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