3) McCall Distributing Company distributes a lightweight children's sled for $20 per unit. Fixed costs are $180,000 Variable costs per sled are $ 5 for materials and $3 for labor. annually. Answer each of the following questions as independent questions, meaning they all begin with the above scenario and do NOT build on each other. Remember to show all work! A) What is the CM ratio for the sled? B) Determine the break-even point in sales dollars. C) If sales increase by $50,000 during the coming year due to demand, how much should net operating income increase? D) Current operating results are: Sales Revene$400,000 Variable Costs 160,000 Fixed Costs 180,000 Calculate the company's degree of operating leverage and new net operating income if sales increased by 20%