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 $180.000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin $ 960,000 480,000 480,000 Fixed expenses 180,000 Net operating income $ 300,000 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. Assume this year's unit sales and total sales increase by 54,000 units and $2,160,000, respectively. If the 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-b. Assume the president expects this year's unit 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 14% reduction in the selling price, combined with a $62,000 increase in advertising, would Increase this year's unit sales by 25%. a if the calec mananer le rinht what wild he thie vaare not oneration income if hic irieac are implementar? Check my wo