Feather Friends, Incorporated, distributes a high-quality wooden birahouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. its operating results for last year were as follows: 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. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,000, respectively. If the 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.b. Assume the president expects this year's unit 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 $67,000 increase in advertising, would 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 $2.40 per unit He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. What is the product's cm rotio? Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that selis for $120 per unit. Varibble expenses are $60.00 per unit, and fixed expenses total $160,000 per year. its operating results for last year were as follows: 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 dolor soles. 3. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,020, respectively. If the 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-b. Assume the president expects this year's unit 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 $67,000 increase in advertising. would 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 $2.40 per unit. He thinks that this move, combined with some increase in advertising. would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Use the CM ratio to determine the break-even point in doliar sales. (Do not round intermediate calculations.) Feather Friends, Incorporated, distributes a high-quality wooden birchouse that sells for $120 per unit Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: 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. Assume this year's unit sales and total sales increose by 48,000 units and $5,760,000, respectively. If the 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-b. Assume the president expects this year's unit 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 $67,000 increase in advertising, would 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 $2.40 per unit. He thinks that this move, combined with some increase in odvertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520.000 net operating income as last year? Complete this question by entering your answers in the tabs below. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,000, respectively. If the fixed expenses do not change, how much will net opereting income increase? (Do not round intermediate calculations.) Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per yeat, its operating results for last year were as follows: 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. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,090, respectively. If the 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.b. Assume the president expects this year's unit 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 $67,000 increase in advertising, would 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 soles commission by $2.40 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still eam the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. What is the degree of operating leverage based on Last year's sales? (Round intermediate caiculations and final answers to 2 decimol places,) Feather Friends, Incorporated, distributes a high-quality wooden birchouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year, its operating results for last year were as follows: 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. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,020, respectively. If the 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-b. Assume the president expects this year's unit 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 $67,000 increase in advertising, would 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 $2.40 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and stil earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Assume the president expects this year's unit sales to increase by 16%. Using the degree of operating leverage from last year. what percentage increase in ret opereting income will the company realize this year? (Round intermediate calculations and fingl answer to 2 decimal places.) Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year, its operating results for last year were as follows: 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. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,000, respectively. If the 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? 4b. Assume the president expects this year's unit 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 $67,000 increase in advertising. would 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 $2.40 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 13% reduction in the selling price, combined with a $67,000 increase in advertising. would increase this year's unit sales by 25%. If the sales manoger is right, what would be this year's net operating income if his ideas are implemented? (Do not round intermediate calculations.) Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit Variable expenses are $60.00 pet unit, and fixed expenses total $160,000 per year. its operating results for last year were as follows: 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 dolar sales. 3. Assume this year's unit sales and total sales increase by 48,000 units and $5,760,000, respectively. If the 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.b. Assume the president expects this year's unit sales to increase by 16% Using the degree of operating leverage from last yeac, 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 $67,000 increase in advertising. would 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 iamplemented, how much will net operoting 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 $2.40 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unt sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 13s reduction in the seling price, combined with a $67,000 increase in advertising. would increase this year's unit sales by 25%. If the sales manager's ideas ore implemented, how much will net operating income increase or decrease over last yesr? (Negative. amounts should be input wath a minus sign.) Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells tor $120 per unit. Variable expenses are $60,00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Required: Answer each question independently based on the original data: What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's ynit sales and total sales increase by 48,000 units and $5,760,000, respectively. If the 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-b. Assume the president expects this year's unit 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 $67,000 increase in advertising, would 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 $2.40 per unit. He thinks that this move, combined with some increase in advertising. would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,520,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The president does not want to change the selling price. Instead, he wants to increase the sales commissiorloy $2.40 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president jncrease this year's advertising expense and stili earn the same $1,520,000 net operating income as last year? (Do not round intermediate calculations.)