1. Cm ratio

2.Break even point in dollar salles

3.Net operating income_____by_____

4.Degree of operating leverage

5.Net operating income increases by__%

6.Net operating income(loss)

7.Increase(decrease) to net operating income

8.The amount by which advertising can be increased is___

Feather Fnends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Varlable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. its operaung results for last year were as follows: Required: Answer each question independenty based on the onginal data: 1. What is the product's CM ratio? 2 Use the CM ravo to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 57,000 units and $6,840,000, respectively. If the fxed expenses do not change, how much will net operating income increase? 4-a. Whot is the degree of operating leveroge bosed on iastyear's sales? 4-b. Assume the president expects this year's unit sales to increase by 10%. Using the degree of ooerating leverage from vost year. what percentage increase in net operating tocome wil the company realize this year? 5. The sales manager is corvinced that o 15 s reduction in the seling orice, combined with a $75,000 increase in odvertising. would increase this year's unit soles by 25% a if the soles manoger is nght, whot would be this year's net operatiog income if bis iceas ore implemented? b. If the sales monagers ideos are imolemented, now much will pet operoting income increose 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 $1.80 per unit. He thinks thot this move, combined wath some increase in odvertsing. Would increase this years unit soles by 25% \% How muci could the president increose this yearls odvertising expense and still esin the same $1.400,000 get operating income os last year? Complete this question by entering your answers in the tabs below