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: Required: Answer each of the following independent questions based on the original data. 1. What is the product's CM ratio? 6-a. The sales manager is convinced that a 10% reduction in the selling price, combined with a $20,800 increase in advertising, would increase this year's unit sales by 40%. If the sales manager is right, what would be this year's operating income if his ideas are implemented? Answer is complete but not entirely correct. 6-b. Do you recommend implementing the sales manager's suggestions? Yes No