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( Answer is not complete. Complete this question by entering your answers in the tabs below. Use the CM ratio to determine the break-even point in dollar sales. Note: Do not round intermediate calculations. Answer is not complete. Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 11% reduction in the selling price, combined with a $68,000 increase in advertising, wolld increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? Note: Do not round intermediate calculations. Answer is not complete. Complete this question by entering your answers in the tabs below. What is the degree of operating leverage based on last year's sales? Note: Round intermediate calculations and final answer to 2 decimal places. Answer is not complete. Complete this question by entering your answers in the tabs below. Assumethis year's unit sales and total sales increase by 45,000 units and $1,800,000, respectively. If the fixed expenses do not change, how much will net operating income increase? Note: Do not round intermediate calculations. Answer is not complete. Complete this question by entering your answers in the tabs below. Assume the president expects this year's unit sales to increase by 15%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? Note: Round intermediate calculations and final answer to 2 decimal places. Answer is not complete. Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 11% reduction in the selling price, combined with a $68,000 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? Note: Negative amounts should be input with a minus sign. Answer is not complete. Complete this question by entering your answers in the tabs below. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.00 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $360,000 net operating income as last year? Note: Do not round intermediate calculations. Problem 2-23 (Algo) CVP Applications; Contribution Margin Ratio: Degree of Operating Leverage [LO21, LO2-3, LO2-4, LO2-5, LO2-8] Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. its operating results for last year were as follows: Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 3. Assume this year's unit sales and total sales increase by 45,000 units and $1,800,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leveroge based on last year's sales? 4-a. What is the degree of operating leveroge based on last years sales? 4b. Assume the president expects this year's unit sales to increase by 15% 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 monager is convinced that a 11% reduction in the selling price, combined with a $68,000 increase in odvertising. would increase this year's unit sales by 25%. a. If the sales manoger is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager is right, what would be this year's net operating incomerne if his ideas are implemented ideas are implemented, how much wili 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 $2.00 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $360,000 net operating income as last year