Feather Friends, Incorporated, distributes a high$-$quality wooden birdhouse that sells for $$20$ per unit. Variable expenses are $$10$ per unit, and fixed expenses total $$220,000$ per year. Its operating results for last year were as follows:

$\backslash$table$[[\backslash$table$[[$Sales units$)],[$Variable expenses$],[$Contribution margin$],[$Fixed expenses$]],$$$,\backslash$table$[[\backslash$table$[[560,000],[280,000],[280,000],[220,000]]]]],[$Operating income,$$,60,000]]$

Required:

Answer each question independently based on the original data:

What is the product's CM ratio?

Use the CM ratio to determine the break$-$even point in sales dollars.

Assume this year's total sales increase by $$50,000.$ 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 $15\%$ 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.

$5.$ The sales manager is convinced that a $12\%$ re:uction in the selling price, combined with a $$30,000$ increase in advertising, would increase this year's unit sales by $30\%.$

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?

$6.$ The president does not want to change the selling price. Instead, he wants to increase the sales commission by $$1$ per unit. He