Feather Friends, Inc., distributes a high-quality wooden that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? Answer is complete and correct 50 CM ratio 2. Use the CM ratio to determine the break-even point in dollar sales. Answer is complete and correct 400,000 Break-even point in sales dollars 3. Due to an increase in demand, the company estimates that sales will increase by $44,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change? Answer is not complete Net operating income increases