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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

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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 $ 2,000,000 1,000,000 1,000,000 200,000 5 800,000 Req 1 Reg 2 Reg 3 Reg 4A Reg 48 Reg SA Reg 58 Reg 6 Assume this year's unit sales and total sales increase by 45,000 units and $3,600,000, respectively. If the fixed expenses do not change, how much will net operating Income increase? (Do not round intermediate calculations.) Not oporating income Increnses by Reg 1 Reg 2 Reg 3 Reg 4A Reg 43 Reg SA Reg 58 Reg 6 The sales manager is convinced that a 13% reduction in the selling price, combined with a $75,000 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 ir his ideas are implemented? (Do not round intermediate calculations.) Not operating income (oss) Reg 1 Reg 2 Reg 3 Reg 4 Reg 48 Req 5A Reg 5B Reg 6 The sales manager is convinced that a 13% reduction in the selling price, combined with a $75,000 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.) Increaso (decrease) to not operating incomo Reg 1 Reg 2 Reg 3 Req 4A Req 4B Reg SA Reg 58 Req 6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.20 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $800,000 net operating income as last year? (Do not round Intermediate calculations.) Show less The amount by which advertising can be increased in

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