Feather Friends, incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit Variable expenses are $60.00 per unit, and foxed expenses total $180,000 per year its operating results for last year were as follows: Required: 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 45,000 units and $5,400,000, respectivoly. If the fixed expenses do not change, how much will net operating income incroase? 4-a. What is the degree of operating leverage bosed on last year's sales? 4.b. Assume the president expects this year's unit sales to increase by 17\%. Using the degree of operating leverage from last year, what percentage increase in net operating income wal the company reolize this year? 5. The sales manager is convinced a 13% reduction in the selling peice, combined with a $77,000 increaso in advertising. would increase this year's unit sales by 25%. a. If the sales managor is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will 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 $2.10 per unit. He thinks 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 eam the same $1,320,000 net operating income as last year? Complete this question by entering your answers in the tabs below