Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $24 per unit. Variable expenses are $12 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales (21,000 units) Variable expenses Contribution margin Fixed expenses Operating income $ 504, 000 252,000 252, 000 200,000 $ 52,000 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 20%. How much could the president increase this year's advertising expense and still earn the same $52,000 operating income as last year? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Reg 4A Reg 4B Req 5A Req 5B Reg 6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $32,000 increase in advertising, would increase this year's unit sales by 20%. 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.) Show less A Increase (decrease) to operating income $ 42,080 x Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $24 per unit. Variable expenses are $12 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales (21,000 units) Variable expenses Contribution margin Fixed expenses Operating income $ 504, 000 252,000 252, 000 200,000 $ 52,000