Feather Friends, Incorporated, distributes a high quality wooden birdhouse that sells for $ 2 4 per unit Variable expenses are $ 1 2 per unit, and fixed expenses total $ 2 0 0 , 0 0 0 per year Its operating results for last year were as follows Required Answer each question independently based on the original data What is the product's CM ratio Use the C M ratio to determine the break even point in sales dollars Assume this year's total sales increase by $ 5 0 , 0 0 0 If the fixed expenses do not change, how much will operating income increase Assume that the operating results for last year were as in the question data 4 a Compute the degree of operating leverage based on last year's sales 4 b The president expects sales to increase by 2 0 next year Using the degree of operating leverage from last year, what percentage increase in operating income will the company realize this year Calculate the dollar increase in operating income The sales manager is convinced that a 1 0 reduction in the selling price, combined with a $ 3 2 , 0 0 0 increase in advertising, would increase this year's unit sales by 2 0 a If the sales manager is right, what would be this year's operating income if his ideas are implemented b If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year The president does not want to change the selling price Instead, he wants to increase the sales commission by $ 1 per unit He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 2 0 How much could the president increase this year's advertising expense and still earn the same $ 5 2 , 0 0 0 operating income as last year Complete this question by entering your answers in the tabs below The sales manager is convinced that a 1 0 reduction in the selling price, combined with a $ 3 2 , 0 0 0 increase in advertising, would increase this year's unit sales by 2 0 If the sales manager is right, what would be this year's operating income if his

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Feather Friends, Incorporated, distributes a high   quality wooden birdhouse that sells for $ 2 4 per unit  Variable expenses are $ 1 2 per unit, and fixed expenses total $ 2 0 0 , 0 0 0 per year  Its operating results for last year were as follows  Required  Answer each question independently based on the original data  What is the product's CM ratio  Use the C M ratio to determine the break   even point in sales dollars  Assume this year's total sales increase by $ 5 0 , 0 0 0   If the fixed expenses do not change, how much will operating income increase  Assume that the operating results for last year were as in the question data  4   a   Compute the degree of operating leverage based on last year's sales  4   b   The president expects sales to increase by 2 0   next year  Using the degree of operating leverage from last year, what percentage increase in operating income will the company realize this year  Calculate the dollar increase in operating income  The sales manager is convinced that a 1 0   reduction in the selling price, combined with a $ 3 2 , 0 0 0 increase in advertising, would increase this year's unit sales by 2 0     a   If the sales manager is right, what would be this year's operating income if his ideas are implemented  b   If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year  The president does not want to change the selling price  Instead, he wants to increase the sales commission by $ 1 per unit  He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 2 0     How much could the president increase this year's advertising expense and still earn the same $ 5 2 , 0 0 0 operating income as last year  Complete this question by entering your answers in the tabs below  The sales manager is convinced that a 1 0   reduction in the selling price, combined with a $ 3 2 , 0 0 0 increase in advertising, would increase this year's unit sales by 2 0     If the sales manager is right, what would be this year's operating income if his

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Feather Friends, Incorporated, distributes a high - quality wooden birdhouse that sells for $ 2 4 per unit. Variable expenses are $ 1 2 per

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