Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $6 per unit, and fixed expenses total $240,000 per year. Its operating results for last year were as follows: Sales (24,000 units) Variable expenses Contribution margin Fixed expenses Operating income $480,000 144,000 336,000 240,000 $ 96,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Req 5A Req 58 Req 6 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%. If the sales manager is right, what would be this year's operating income if his Ideas are implemented? (Do not round intermediate calculations.) Operating income Req 1 Req 2 Req 3 Req 4A Req 48 Req 5A Req 58 Req 6 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%. If the sales manager's ideas are implemented, how much will operating income increase or decrease over last year? (Do not round intermediate calculations. Decrease amount should be input with a minus sign.) Increase (decrease) to operating income Show less A Req 1 Req 2 Req 3 Req 4A Req 48 Req 5A Req 5B Req 6 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 25%. How much could the president increase this year's advertising expense and still earn the same $96,000 operating income as last year? The amount by which advertising can be increased is Show less A