4. 10.00 points Problem 8-1 Performing Basic CVP Analysis Performing Basic CVP Analysis (LO1 CCA; LO2 CO6, 10) Stratford Company distributes a lightweight lawn chair that sells for $20 per unit. Variable expenses are $6 per unit, and fixed expenses total $451,500 annually. Required Answer the following independent questions: 1. What is the products CM ratio? Contribution margin ratio 70% 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars S 645,000 3. The company estimates that sales will increase by $120,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income S 84,000