3 Feather Friends loc carutes a high quality wooden birdhouse that sells for $80 per unit Variable expenses are $4000 per unit and led expenses total $160,000 per year, its operating results for last year were as follow 5 3,240,000 Sales Variable case Contribution in and expenses perating income 3,130,00 100,00 50,000 Required: Answer each question independently based on the original data: 1 What is the products CM Toto 2. Use the CM ato to determine the break-even point in dollar sales 3. If this year's sales increase by $48.000 and fixed expenses do not change how much winnet operating income increase? 4-5. What is the degree of operating leverage based on last year's sales? 4-6 Assume the president expects this years sales to increase by 16% Using the degree of operating leverage from last year, what 5. The sales manager as convinced that a 13% reduction in the selling price.combined with a $65.000 increase in adverning would increase this year's unit sales by 25% If the sales manager is night, what would be this year's ner operating income if his ideas de implemente? D. If the sales manager's ideas are clemented, 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 sale commission by $230 per un He ter that this move.combined with some increase in advertising would increase this year sales by 25% How much could the president increase this year's advertising expense and soll earn the same $900.000 net operating income as last year Complete this question by entering your answers in the tabs below. Ne 2 Mega Res 4 Reg de Reg 5 Reg What is the product's CM ratio? Reg 2 > 3 Fosther Friends, Inc, distributos a high-quality wooden birdhouse that sells for $80 per unit. Vanable expenses are $4000 per unit and faed expenses total $160.000 per year. Its operating results for last year were as follows 334 5 2,240,000 Sales Variable expenses Cootribution margin 1.12. het operating income Ne, 000 Required: Answer each question dependently 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. If this year's sales increase by S48000 and foed expenses do not change how much will net operating income increase? 4-a What is the degree of operating leverage based on last years sales? 4-5. Assume the president expects this year's sales to increase by 16% Using the degree of operating leverage from last year, what percentage increase m net operating income will the company realize this year? $ The sales manager is convinced that a 13% reduction in the selling once combined with a $65.000 increase and advertising would increase this year's unit sales by 25% at the sales manager is right, what would be this year's net operating income of his ideas are implemented but 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 $2.30 petunt. He thanks that this move combined with some increase in advertising, would increase this years sales by 25% How much could the president increase this year's advertising expense and still earn the same $960.000 net operating income asjast year? Complete this question by entering your answers in the tabs below. Reg 4 Rec 4 SA Pet Use the ratio to determine the breakeven point in dollar sales. Do not round intermediate calculation) $320.000 Reg1 Reg 3 > 3 Feather Friends ine. Grutes a high-quality wooden bivanouse that sells for $80 per unit. Variable expenses are 540.00 per unit. and red expenses total $100.000 per year its operating results for last year were as follows: Variable expenses Contribution $ 3,140, 11, 110,000 160,000 $ . ut operating incom Required: Answer each question independently based on the original data 1 What is the products CM ratio 2 Use the CM ratio to determine the break-even point in de ses 2. this year's sales increase by $48.000 and fixed expenses do not change how much wil net operating income increase? 4. What is the degree of operating leverage based on last year's sales? 4-6. Ascure the president expects this year's sales to increase by 16%. Using the degree at operating leverage from last year what percentage increase in net operating income will the company realize this year? 5. The sales managers convinced that a 13% reduction in the seting price.combined with a $65.000'increase matering, would increase this year's unit sales by 25% of the sales manager is nghit, what would be this year's net operating income ideas are implementar b. If the sales manager's ideas are implemented, how much wil 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 commission by 5230 perut He think that this move.combined with some mcrease in advertising, would increase this year fales by How much could the president increase this year's advertising expense and still earn the same $900.000 net operating income as last year? Complete this question by entering your answers in the tabs below. He Ren4 this year sales increase by $45,000 and fixed expenses de not change, how much will be operating income create ny 524 000 Feather Frends, inc. detributes a high-quality wooden birdhouse that sells for $80 per unit Variable expenses are 54000 per unit and fixed expenses total $160.000 per year its operating results for last year were as follows 5 2,240,00 variable expenses Contribution margin Fixed expenses Net operating con 1,130,00 1. 0 Required: Answer each question independently based on the ongmal cinta 1 What is the products CM ratio? 2. Use the CM ato to determine the break even point in dollar sales 2. If the year's soles creace by $48.000 and mixed expenses do not change, how much wil net operating income increase? 4-8 What is the degree of operating leverage based on last year's sales? 4-6. Assume the president expects this year's 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? The sales managers convinced that a 13% reduction in the selling price.combined with a $65.000 increase in advertising, would increase this year's unit sales by 25% at the sales manager is night what would be this year net operating income of his ideas are implemented but the sales manager's ideas are implemented, how much wil 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 52 30 berunt He thinks that this move combined with some increase in advertising, would increase the year's sale by 25% How much cod me president increase this year's advertising expense and sullearn the same 5960,000 net operating income assast year Complete this question by entering your answers in the tabs below Hea realed R4 SA Rad 30 What is the degree of operating leverage based on Inst year's sales? (Round intermediate allation and final tower to decimal place Degree of certiorage 1 17 Feather Friends in distributes a lugh-quality wooden bu house that sets for so perunt Vartable expenses are $40.00 per un and openses total 5180.000 per year its operating cos for last year were a fost 33,340,000 1.120.000 Variable de Contribution urg 5 et cerating income 0.000 Required: Answet each question independently based on the original data 1 What is the products CM ratio 2. Use the CM ato to determine the break-even point in dollar sales 3. this year's sales create by $40,000 and foed expenses do not change how much will net operating income increase? 4- What is the degree of operating leverage based on last year's sales 4.6. Assume me president expects this year's sales to increase by 16 Using the degree of operating leverage for last year wat percentage increase in net operating income will the company rere this year 5. The sales manager is convinced that a 13% reduction in the selling price.combined with a 565.000 inches in advertising would increase this year's unit sales by 25 if the sales manager is ngh, what would be this year's net operating income ideas in plemented Ir the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year The president does not want to change the selling price. Instead, he wants to increase the cales comision by 52.30 en He thanks that this move, combined with some increase in advertising would increase this year's soles by 25% How much could the president increase this year's advertising expense and still earn the same $900.000 net operating income as alty Complete this question by entering your answers in the tabs below. Reg Res 2 Re Reg 4 Reg4 RSA Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage ramust you what percentage increase in net operating income will the company recan this year? (Round immediate final swer to 2 decimal places tant operating income increases by 1872 Feather Frenos, Ine distributes a migh-quality wooden birdhoute that sets for $90 per unit Vartable expenses are $40.00 per un and love expenses total $160.000 per year is operating results for last year were as follows: Sales Variable expenses Contribution martin senses Net operating income 3 2,340, 11. 1.120,000 90,00 Required: Aruwer each question independently based on the orginal data 1 What is the product's CM ratio 2. Use the CM ratio to determine the break-even point in dollar sales 3. If this year's sales increase by $48.000 and fixed expenses do not change. how much will net operating income increase! 4-6 What is the degree of operating leverage based on last year's sales? 4-6. Alcume the president expects this year's sales to increase by to. Using the degree of operating severage from last year wat percentage increase in net operating income wil the company realize this year? 5. The sales manager is convinced that a 13% reduction in the selling price, combined with a $65.000 nors in advertising, would increase this year's unit sales by 25% of the sales managerianght, what would be this year's net operating income of his ideas are implemented by the sales managers ideas are implemented, how much will net operating income increase or decrease over laut year 6. The president does not want to change the selling price. Instead, he wants to increase the sales comicion by $200 per nie think that this move.combined with some increase in advertising, would increase this year's solby 2. How much could the president increase this year's advertising expense and still earn the same $60.000 net operating income alatt year Complete this question by entering your answers in the tabs below. Red 40 RA The sales manager convinced that a 13% reduction in the selling prio, combined with a $65.000 increase this year's on sale by 25%. If the sales managers right, what would be this year's eriti his ideas are implemented? (Do not round intermediate actions) 5811010