Deckyard Company distributes a lightweight lawn chair that sells for $63 per unit. Variable expenses are $25.20 per unit, and fixed expenses total $264,600 annually.

-What is the product's CM ratio?

-Use the CM ratio to determine the break-even point in sales dollars?

-The company estimates that sales will increase by $55,000 during the coming year due to increased demand. By how much should net operating income increase?