Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,920, eee 960, eee 960, eee 2ee, eee 760,eee Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales Increase by $47,000 and fixed expenses do not change, how much will net operating Income Increase? 4-a. What is the degree of operating leverage based on last year's sales? 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 will the company realize this year? 5. The sales manager is convinced that a 15% reduction in the selling price, combined with a $74,000 Increase in advertising, 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 If his ideas are Implemented? b. If the sales manager's Ideas are Implemented, how much w h will net 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 $1.70 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much president Increase this year's advertising expense and still earn the same $760,000 net operating Income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg 5A Reg 5B Reg 6 The sales manager is convinced that a 15% reduction in the selling price, combined with a $74,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? (Negative amounts should be input with a minus sign.) Increase (decrease) to net operating income