5 point Me 3 Book Pre Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit. and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin- Fixed expenses Net operating income $2,000,000 1,040,000 1,040,000 180,000 $ 860,000 Graw Required: Answer each question independently based on the original data: 1 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 $53,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 19% 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 12% reduction in the selling price, combined with a $68,000 increase in advertising, would increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If 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 $1.80 per unit. Hel thinks that this move, combined with some increase in advertising, would increase this year's sales by 25% How much could the president increase this year's advertising expense and still earn the same $860,000 net operating income as last year? Submit Check my work 5 3 points eBlock increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if his ic b. If the sales manager's ideas are implemented, how much will net operating income 6. The president does not want to change the selling price. Instead, he wants to incre thinks that this move, combined with some increase in advertising, would increase this president increase this year's advertising expense and still earn the same $860,000 n Complete this question by entering your answers in the tabs below. Print References Req 11 Req 2 Req 3 Req 4A Req 48 Req SA R Mc Graw Hin What is the product's CM ratio? CM ratio 2 @ #3 800 80 54 $ 888 Req2> < Previ 3 of 5 N MacBook Pro 44 85 % & 5 6 87 Q W E R T Y B Book increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are impl b. If the sales manager's ideas are implemented, how much will net operating income increase or c 6. The president does not want to change the selling price. Instead, he wants to increase the sales thinks that this move, combined with some increase in advertising, would increase this year's sales president increase this year's advertising expense and still earn the same $860,000 net operating i Complete this question by entering your answers in the tabs below. Pri ferences Req 1 Req 2 Req 3 Req 4A Req 48 Req SA Req 58 Mc Graw Use the CM ratio to determine the break-even point in dollar sales. (Do not round intermediate calculatic Break-even point in dorsales i @2 Homework Saved Increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease 6. The president does not want to change the selling price. Instead, he wants to increase the sales commis thinks that this move, combined with some increase in advertising, would increase this year's sales by 25% president increase this year's advertising expense and still earn the same $860,000 net operating income i Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req SA Reg 58 Rec If this year's sales increase by $53,000 and fixed expenses do not change, how much will net operating income Net operating income by < Prev 3 of 5 Next > 50 888 85 4 % # 83 62 W E S MacBook Pro <6 & 7 27 11 8 .0 R T Y U D F G H J Chapter 2 Humework-Coac omework artomheducation.com Get Homes with Chegg Shy Chegg.c Saved increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission thinks that this move, combined with some increase in advertising, would increase this year's sales by 25% How president increase this year's advertising expense and still earn the same $860,000 net operating income as las Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 48 Reg 58 Req 6 What is the degree of operating leverage based on last year's sales? (Round intermediate calculations and final answe decimal places.) Degree of operating leverage 2 30 80 $ 54 #3 888 W E S D < Previ 3 of 5 Next > 25 tv MacBook Pro 66 6 &7 -11 80 R T Y U LL F G H 6 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000. increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are impleme b. If the sales manager's ideas are implemented, how much will net operating income increase or decre 6. The president does not want to change the selling price. Instead, he wants to increase the sales com thinks that this move, combined with some increase in advertising, would increase this year's sales by 2 president increase this year's advertising expense and still earn the same $860,000 net operating incor Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4A *Req 48 Req SA Req 58 Req Assume the president expects this year's sales to increase by 19%. Using the degree of operating leverage fr what percentage increase in net operating income will the company realize this year? (Round intermediate ca final answer to 2 decimal places.) Net operating income increases by <4a meg sa>> # 80 54 888 73 @2 2 W E S D 5 25 < Prev 3 of 5 BTV MacBook Pro 66 7 29 Next > 88 R T Y U F G H r Z X C V B N r2 Homework Saved ook int 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are impleme b. If the sales manager's ideas are implemented, how much will net operating income increase or decr 6. The president does not want to change the selling price. Instead, he wants to increase the sales con thinks that this move, combined with some increase in advertising, would increase this year's sales by 2 president increase this year's advertising expense and still earn the same $860,000 net operating inco Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 40 Reg SA Req 58 Red The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 increase would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net op his ideas are implemented? (Do not round intermediate calculations.) Net operating income (loss) $710,000 44 &7 4-11 8 .8 E R T Y U D LL G H J omework 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 incre increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented If the sales manager's ideas are implemented, how much will net operating income increase or decrease- b. 6. The president does not want to change the selling price. Instead, he wants to increase the sales commiss thinks that this move, combined with some increase in advertising, would increase this year's sales by 25% H president increase this year's advertising expense and still earn the same $860,000 net operating income a Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Reg SA Reg 58 Req 6 The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 increase in ad would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net op income increase or decrease over last year? (Negative amounts should be input with a minus sign.) Increase (decrease) to net operating income 2 @ 20 888 # 93 $ 4 W EL E S D R 30 LL F % 85 < Prev 3 of 5 MacBook Pro 6 96 stv 44 27 Next > T 11 T Y U G H 8 J omework Saved 5. The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 increa increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease- 6. The president does not want to change the selling price. Instead, he wants to increase the sales commiss thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. H president increase this year's advertising expense and still earn the same $860,000 net operating income a Complete this question by entering your answers in the tabs below. Req 1 Req 21 Reg 3 Req 4A Req 48 Req SA Req 58 Red6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $ unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25 much could the president increase this year's advertising expense and still earn the same $860,000 net operating last year? The amount by which advertising can be increased i 2. 80 30 < Prev 3 of 5 Next >> $ % 54 #3 W E S D 85 MacBook Pro 66 44 7 & 114 .8 R T Y U FL G H J