Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Vanable expenses are $2000 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 960,000 480,000 480,000 160,000 320,000 $ aswer each question independently based on the original data: What is the product's CM ratio? Use the CM ratio to determine the break-even point in dollar sales. If this year's sales increase by $59,000 and fixed expenses do not change, how much will net operating income increase? a. What is the degree of operating leverage based on last year's sales? b. Assume the president expects this year's sales to increase by 12%. Using the degree of operating leverage from last year, wh Sercentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $79.000 increase in advertising, woul increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if 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 $1.90 per unit H 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 $320,000 net operating income as last year? Complete this question by entering your answers in the tabs below: Prou Nayt > 9.000 incre year's unit sales by 25% he sales manager is right, what would be this year's net operating income if his ideas are implemented the sales manager's ideas are implemented, how much will net operating income increase or decrease me president does not want to change the selling price. Instead, he wants to increase the sales commiss Es that this move, combined with some increase in advertising, would increase this year's sales by 25% ident increase this year's advertising expense and still earn the same $320,000 net operating income a omplete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Reg SA Req 50 Reg 6 at is the product's CM ratio? ratio % Re Req 2 > ORIC de