Dog Dandy distributes a dog collar made of wooden beads that sells for $40 per unit. Variable expenses are $20 per unit, and fixed expenses total $129,600 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Operating income $432,000 216,000 216,000 129,600 $ 86,400 Required: Answer each of the following independent questions based on the original data. 1. What is the product's CM ratio? CM ratio % 2. Use the CM ratio to determine the break-even point in dollar sales. Break-even point in dollar sales 3. Assume this year's unit sales and total sales decrease by $50,800. If the fixed expenses do not change, how much will operating income decrease? Decrease in operating income