Feather Friends, Incorporated, distributes a high quality wooden house that is for $20 per unit Variable expenses are per unit, and fixed expenses total $180,000 per year les operating results for last year were as follows Help Save & Submit $400, Sales (20.000 units) Variable expenses Contribution denenses Operating income 240,00 1000, 10,000 Required: Answer each question Independently based on the originaldate 1. What is the products CM ratio? 2. Use the CM ratio to determine the break-even point in sales dollar 3. Assume this year's total sales increase by $75,000 If the fived 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-. Compute the degree of operating leverage based on last year's soles 4-5. The president expects sales to increase by 20% 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 10% reduction in the selling price, combined with a $30,000 increase in advertising would increase this year's unit sales by 25% 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 Si 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 resident increase this vent's advertising exence and still the same 550 000 nertina income ta