Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Variable expenses Contribution margin Fixed expenses Net operating income $ 3, 120, eee 1, 55e, Bee 1,550,000 10,eee $ 1,398,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 soles. 3. If this year's sales increase by $55,000 and fixed expenses do not change, how much will net operating income increase? 4-8. 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 13%. 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 $67,000 increase in advertising, would increase this year's unit soles by 25% . 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 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 $1.50 per unit He thinks 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 $1,380.000 net operating income as last year? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Red 2 Reg 3 Rey 4A Req 40 Rey 5A Reg 5B Reg 6 The sales manager is convinced that a 1496 reduction in the selling price, combined with a $67,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? (Do not rourid intermediate calculations.) Not aparating income (Reg 4B Reg SB > Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,120, 1,560,000 1,560, 15e,eae $ 1.390.ge 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 soles increase by $55,000 and fixed expenses do not change, how much will net operating income increase? 4.8. 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 13%. 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 $67,000 increase in advertising, would increase this year's unit sales by 25% s. If the sales manager is right, what would be this year's net operating income if his ideos are implemented? b. If the sales manager's ideas are implemented, how much 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 $1.50 per unit He thinks that this move, combined with some increase in advertising, would increase this year's soles by 25%. How much could the president increase this year's advertising expense and still earn the same $1,380.000 net operating income as last year? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Rey 4A Reg 4 Req 5A Reg 5B Reg 6 The sales manager is convinced that a 14% reduction in the selling price, combined with a $67,000 increase in advertising, would increase this year's unit sales by 25%. Ir 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 sion.) Increase (decreto income not operating ( ReqSA Req6 > Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: $ 3,120,cae 1,560, eee 1,568, Bee Variable expenses Contribution margin Fixed expenses Net operating income $ 1,380, 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 $55,000 and fixed expenses do not change, how much will net operating income increase? 4-. 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 13%. 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 $67,000 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 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 $1.50 per unit He thinks that this move, combined with some increase in advertising, would increase this year's soles by 25% How much could the president increase this year's advertising expense and still earn the same $1,380.000 net operating income as last year? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 4 Req 5A Reg 5B Reg 6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.50 per unit. He thinks 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 $1,380,000 net operating income as last year? Show less The mount by which advertising can be increased (Reg 58