Deckyard Company distributes a lightweight lawn chair that sells for $39 per unit. Variable expenses are $15.60 per unit, and fixed expenses total $145,080 annually. Required 1. What is the product's CM ratio? 25 polnts CM ratio 1:% 02:44:10 Skipped 2. Use the CM ratio to determine the break-even point in sales dollars Break-even point in sales dollars 3. The company estimates that sales will increase by $47,000 during the coming year due to increased demand. By how much should net operating income increase? 3. The company estimates that sales will increase by $47000 during the coming year due to increased demand. By how much should net operating income increase? et operating income increases b 25 points 02:43:50 Skipped 4. Assume that the operating results for last year were as follows: 1,209,000 Sales Variable expenses 483,600 Contribution margin Fixed expenses 725,400 145,080 Net operating income$ b. The president expects sales to increase by 12% next year. By how much should net operating income increase? 25 polnts Net operating income increases by 02:43:23 Skipped 5. Refer to the original data. Assume that the company sold 41,500 units last year. The sales manager is convinced that a 12% reduction in the selling price, combined with a $43,500 increase in advertising expenditures, would increase annual unit sales by 50%. a.Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 5. Refer to the original data. Assume that the company sold 41,500 units last year. The sales manager is convinced that a 12% reduction in the selling price, combined with a $43,500 increase in advertising expenditures, would increase annual unit sales by 50%. a.Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) Proposed Last Year 41,500 units units Total Per Unit Total Per Unit b. Would you recommend that the company do as the sales manager suggests? Yes O No 6. Refer to the original data. Assume again that the company sold 41,500 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $2.40 per unit. He thinks that this move combined with some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement, use the incremental analysis approach. he amount by which advertising can be increased is