Feather Incorporated, highquality wooden that sells for $80 por Variable expenses are $40,00 per , and expenses total $160,000 per yearIts operating results for last year were as follows Contribution 2,110,000 1,000,000 160,000 930,000operating Required: each question independently based on the onginal What the product's CM ? Use the CM to determine the break even point in dollar sales Assume this year's unit sales and total sales increase by 52.000 units and $4160.000respectively the expenses do not changemuch wil net operating income increase What is the degree of operating leverage based on last year's the president expects this year's sales to increase by Using the degree of operating leverage from last year what percentage increase in net operating income will the company this year? The sales manager is convinced that a 14% reduction in the selling price, combined with a $74.000 increase in would increase this year's unit sales by 25% the sales manager rightwhat would be this year's net operating income his ideas are implemented? 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 priceInstead, he wants to increase the sales commission by $180 per unitHe thinks that this movecombined 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 $ 920,000 net operating income as last year?

Feather Friends, Incorporated, distrbutes a high-quality wooden birdhouse that sells for $80 per unit Variable expenses are $4000 per unit, and fixed expenses total $160,000 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 52,000 units and $4,160,000, respectively If the fixed expenses do not change, how much will net operating income increase? 4-a. 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 14%. 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 manager is convinced that a 14% reduction in the selling price, combined with a $74.000 increase in advertising. would increase this year's unit sales by 25% a. If the sales manager 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 fast year? 6: The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.80 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 adverising expense and still earn the same $920,000 net operating income as last year