7 Resumo Feather Friends, Inc, distributes aigh quality wooden birdhouse that sells for $120 per unit Variable expenses are $60.00 per unn. and food expenses total $100.000 per year its operating results for last year were as follows 30 DO Sales Variable Contribution margin Fixed expenses Net operating Income 11.NO, 1. 1,500 160, $ 1,340,000 3 000 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 51000 units and $6120.000, respectively. If the 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? 4-6. Assume the president expects this year's unit sales to increase by 16. Using the degree of operating leverage from last year 7 10 points 4 a. What is the degree of operating leverage based on last year's sales? 4.b. Assume the president expects this year's unit 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? 5. The sales manager is convinced that a 13% reduction in the selling price.combined with a $75,000 increase in advertising, woul 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 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 $1.80 per unit, thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% How much could president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last year? 8 +1958 Answer is not complete. Complete this question by entering your answers in the tabs below. Dne OR DARA DAR AO DAR EN DARED thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much coul president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last year? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Reg 4B Red SA Req 5B Req 6 Assume this year's unit sales and total sales increase by 51,000 units and $6,120,000, respectively. If the fixed expenses do not change, how much will net operating income increase? (Do not round intermediate calculations.) Net operating income increases by S 26,000 X SIM Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicam thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last year? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Req 4B Req SA Req 5B Reg 6 Assume the president expects this year's unit 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? (Round intermediate calculations and final answer to 2 decimal places.) Net operating income increases by 22.40 X 1% HU 5 HW 0 Savod Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% How president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Reg 4B Reg 5A Reg 5B Req 6 The sales manager is convinced that a 13% reduction in the selling price, combined with a $75,000 increase in advertis would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating Ince his ideas are implemented? (Do not round intermediate calculations.) Net operating income (loss) $ 1,242,500 K Reg 41 Req 5B > HW Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indi thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How mu president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last year Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 Req 4A Reg 4B Req SA Reg ser Reg 6 The sales manager is convinced that a 13% reduction in the selling price, combined with a $75,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? (Negative amounts should be input with a minus sign.) Increase (decrease to net operating income $ 191,500 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not & Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4A Reg 4B Req 5A Req SB Req 6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1,80 pe unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% much could the president increase this year's advertising expense and still earn the same $1,340,000 net operating incc last year? (Do not round intermediate calculations.) Show lc The amount by which advertising can be increased is