Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? CM ratio 50% 2. Use the CM ratio to determine the break-even point in dollar sales. Break-even point in sales dollars 320,000 3. Due to an increase in demand, the company estimates that sales will increase by $42,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change? Net operating income increases by 21,000