2 Feather Friends, Inc, distributes a high-quality wooden birdhouse that sells for $40 per unit Variable expenses are $20,00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: 10 points 801225 Sales Variable expenses Contribution margin Fixed expenses Net operating Income $1,000,000 540,00 540,000 200.000 $ 340,000 -book References 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 49,000 units and 51960,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4- What is the degree of operating everage based on last year's sales? 4-6. Assume the president expects this year's tinit sales to increase by 17%. 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% rechaction in the setting price, combined with a $74.000 increase in advertising would if the sales manager night, what would be this year's net operating income if his ideas are implemented? bir the sales managers ideas are implemented, how much will net operating income increase or decrease over tast year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $190 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 5240000 net operating income as last year Complete this question by entering your answers in the tabs below 1 19 Red Rou REG 40 RA Rega With Me