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. Required: Answer the following independent questions: 1. What is the product's CM ratio? CM ratio 2. Use the CM ratio to determine the break-even point in dollar sales. Break-even point in sales dollars 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 for net loss decrease) assuming that fixed expenses do not change? Net operating income 4. Assume that the operating results for last year were: Sales $2160.000 1,080.000 Variable expenses Contribution margin Fixed expenses 1.080.000 200.000 $880,000 Net operating Income a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.) Degree of operating leverage b. The president expects sales to Increase by 12% next year. By what percentage should net operating Income Increase? (Round Intermediate calculations to 2 decimal places and final percentage answer to 2 decimal places, le 22.47%) Net operating income increases by 5. Refer to the originaldate Assume that the company old 34 500 The semenager is convinced that 14% reduction in the selling price combined with $63.000 Increase in advertising would increase s by 50% Prepare t o buono come m ore showing the resoft year's operations and one showing the res of operon e se changes are ede. Do not found intermediate calculations. Round your "Per answers to 2 decimal places esther Friends, Ino, Contribution Incomeament Last Year 34.00 units Total PerUnit T Propoceo otal Per Unit Would you recommend that the company does the sales manager suggests Ne Refer to the originaldate Assume sain that the company od 34 500 The president does not want to change the selling price tend, he went to increase the sales commission by $220 per the the the move comes w some ressen siverting would double s t es By how much could advertising be increased with s i ng unchangesDo not prepares income statement use the incrementale s proch Tehno