Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,360,000 1,680,000 1,680,000 180,000 $ 1,500,000 Required: Answer each question independently based on the original data: Req 1 Reg 2 Reg 3 Req 4A Req 4B Reg 5A Req 5B Req 6 Assume the president expects this year's unit sales to increase by 12%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? (Round intermediate calculations and final answer to 2 decimal places.) Net operating income increases by % Req 1 Reg 2 Req 3 Req 4A Req 4B Req 5A Req 5B Req 6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $65,000 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 if his ideas are implemented? (Do not round intermediate calculations.) Net operating income (loss) Req 1 Reg 2 Req 3 Req 4A Req 4B Req 5A Req 5B Reg 6 The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.50 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 $1,500,000 net operating income as last year? (Do not round intermediate calculations.) Show less The amount by which advertising can be increased is Req 1 Re Req 5B Req 3 Req 4A Req 4B Req 5A Reg 5B Req 6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $65,000 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.) Increase (decrease) to net operating income