Feather Friends, Inc. distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $2000 per unit and fed expenses total $160,000 per year, its operating results for last year were as follows sas Contribution ed ex Bet operating income 51,120.000 560.000 560,000 100.000 $ 200.000 Required: Answer each question Independently based on the original data 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales 3. Ir this year's sales increase by $47000 and foed expenses do not change how much will not operating income increase? 4-a. What is the degree of operating leverage based on last year's solos? 4-6. Assume the president expects this year's sales to increase by 15%. Using the degree of operating leverage from last year what percentage increase in net operating income wil the company realize this year? 5. The sales manager is convinced that a 13% reduction in the selling price, combined with a $70,000 increase in schwertising, would increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income his idens are implemented b. If the sales manager's ideas are implemented, how much will not operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.90 per unit. He thanks that this move, combined with some increase in advertising would increase this year's sales by 25% How much could the president increase this year's advertising expense and still earn the same $400,000 net operating income as last year? Complete this question by entering your answers in the tabu below. Rest Reg2 Peg Reg 45 REQ SA R18 What is the products CM ratio CM Res2 ED 28 O