Feather Finends, incorporated, distnbutes a high-quality wooden birdhouse that selis for $120 per unit. Variable expenses are $60.00 per unit, and foxed expenses total $200,000 per year les operating results for last year were as follows: Requlred: Answer each queston independently based on the ongat data: 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Acsume this year's unit sales and total sales increase by 50,000 units and 55,000,000, respectively, if the fixed expenses do not change, how much will net operating income increase? 4. - What is the degree of operating leverage bosed on lan years sales? 4. Ascume the president expects this years unit sales to increase by 17$. Using the degree of operatisg leveroge from iast yeac. what percentage increafe in net operating income wil the company realize this yeor? 5. The sales manager is convinced that a 113 recuction in the seling price. combined with 0560,000 ins sieose in adverssing. would : increase this year's unit cales by 25% a. If the saies manager is nght, whot would be this yeor's net operating income if his loeas are inplemansed? b. If the sales manager's ide os are implemented, how much wil net operating income increbs of decresse over last year? 6. The president does not want to change the seling price.instesd, he wants to increase the caes commisson oy 52.40 per unit. He thinks that this move. combined with some increase in advertising, woul increose this yeo s unis sales by 25 . Hoiv much courd the president increase this yeare advertising expense ond stil eam the seme $1.420.000 net operating income os iastyear