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 Required Answer the following independent questions: 1. What is the product's CM ratio? ratio 2. Use the CM ratio to determine the break-even point in dollar sales. ak-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 (or net loss decrease) assuming that fixed expenses do not change? Net operating income increases by S 4. Assume that the operating results for last year were Sales Variable expenses $ 1,040,000 520,000 Contribution margin Fixed expenses 520,000 180,000 Net operating income $ 340,000 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.)