1. Ashley sells a hammer for $ 50. Its variable expense is $ 35 per unit and its fixed expense is $ 60,000. The current volume is 5,000 units. Each question is independent.

a. Find the CM ratio, the degree of operating leverage, and the break-even point in dollars.

b. Compute the percentage change of operating income when the sales for the next period increase by 25%.

c. If the variable expense decreases by $ 5, find the CM ratio and the break-even sales in the unit.

d. When the fixed expense changes to $ 80,000, find the sales volume to maintain the current operating income.

e. When the fixed expense decreases to $ 40,000 and the variable expense increases to $ 42, how many units should be sold to attain $ 80,000 of operating income?