Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows Sales Contribution margin Fled expenses Net operating Income Required 200 $760,000 Answer each question independently based on the original data 1 What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales 3. Assume this year's unit sales and total sales increase by 51,000 units and $4080.000, respectively if the fixed expenses do not change, how much will net operating income increase 4a What is the degree of operating leverage based on last year's sales 4.b. Assume the president expects this year's unit sales to increase by 15% Using the degree of operating leverage from last year what percentage increase in net operating income will the company realize this year 5. The sales manage convinced that a 12% reduction in the selling price, combined with a $75.000 increase in advertising, would increase this year's unt sales by 25% a. W the sales manager is night, what would be this year's net operating income if f ideas are implemented? b. if the sales manager's ideas are implemented, how much wil net 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 $2.30 per unt. He thinks that this move combated with some increase in advertising, would increase this year's unit sanes by 25% How much could the president increase this year's advertising expense and sat eam the same $760.000 net operating income as last ymarf Complete this question by entering your answers in the tabs below. > Reg