Help Save & Submit Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for 580 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 2,000,000 1.040,000 1,040,000 100.000 $ 860,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM Patio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 47,000 units and $3,760,000, 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 10%. 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 12% reduction in the selling price, combined with a $66,000 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 last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.50 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 $860,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 2 Req1 Reg 3 Reg 4A Reg 4B Reg 5A Reg 5B Reg 6 Chapter 5 Quiz Help Save 6 1 00:47:45 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 47,000 units and $3,760,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-6. 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 10%. 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 12% reduction in the selling price, combined with a $66,000 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 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 $2.50 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 $860,000 net operating income as last year? BOOR Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A Reg 4B Reg SA Req 58 Reg 6 What is the product's CM ratio? CM ratio 50% Reg 2 > 3521 Hels SEN S 1 1 co 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 47000 units and $3.750.000, respectively. If the food expenses do not change, how much wil net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-6. Assume the president expects this year's unit sales to increase by 10%. 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 12% reduction in the selling price.combined with a $66.000 increase in advertising would Increase this year's unit sales by 25% a. I 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 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 $2.50 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 $860,000 net operating income as last year? cook Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req 45 Req5A Reg 58 Res6 Use the CM ratio to determine the break-even point in dollar sales. (Do not found intermediate calculations. Bleak even point in dollar alen Prey 1 of 16 Next > Chapter 5 Out 1 - 1 2013 Answer each question dependently based on the engine 1 What is the product's CM ratio? 2. Use the CM ratio to determine the boven in de 3. Assume this year's unit sales and total sales increase by 47000 unts and $3760.000, dependent change how much will be operating income increase? 4-a. What is the degree of operating leverage based on last year's saint 4-0 Assume the president expects this year's unit les to increase by Using me degree of operating everage for last ye. what percentage increase in net operating income will the company realize is year? 5. The sales manager is convinced that a 12% reduction in the seling price.combined w 305.000 increase in seng would increase this year's unit sales by 25% a. I the sales manager is night, what would be this year's net operating income of his idees are implemented? b. If the salet 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 $2.50 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unt sales by 25%. How much could te president increase this year's advertising expense and still earn the same $360.000 et operating income as last year? -Boge Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reqps Reg 4 Reg 40 Reg SA Rec 58 Rego Assume this year's unit sales and total sales increase by 47,000 units and $3,760,000, respectively. If the foed expenses do not change, how much will net operating income increase? (Do not round intermediate calculations Not operator.com by Chapter 1 Answer each question independently based on the engine 1 What is the products CM 2. Use the CM ratio to determine the brieven en door Assume this years and also increase by 47.000 rus and 33,700,000 Vlagens do not change how much wil net operating income increase? 4. What is the degree of operating leverage based on tast year's we 4-6. Assume the president expects this year's unies to increase by 10%. Using the degree of operating from what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 12% reduction in the price, come with 166,000 sendvertising, would increase this year's unit sales by 2 if the sales manager is right, what would be this year's net income med b. If the set managers ideas are implemented, how much wil net income true or decree over ty? 6. The president does not want to change the selling pricestead, he wants to increase the commonly $2.50 thinks that this move, combined with some increase in advertising would increase your sty 20. ow much die president increase this year's advertising expense and team the same 060,000 net operating incomes a year Complete this question by entering your answers in the tabs below. Reg Reg SA Reg to Regs Reg1 Reg2 Reg 44 Regan What is the degree of operating severage based on last year's sales? (Round intermediate calcular and Malawin to 2 decimal places.) Den of operating leverage Reqs Rog48 Prey 1 of 16 18 Next > 1 43 Answer each question independency based on me on What is the products Mato 2. Use the CM to determine the braven point is de 3. Assume this year's nice and total increase by 47000 and $3.760,000 respectives change how much wil net operating income increase 4-5. What is the degree of operating leverage based on last year? 4-6. Assume the president expects this year's unit is to increase by on. Une degree of operating from what percentage increase in net operating income will the company rezisyear 5. The sales manager is convinced that a 12% reduction in the selling price.combined was creen en wool increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income this ideas are memented? b. If the sale manager's ideas are implemented how much wil net operating income increase of decrease over ty 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by 12.50 per unite thinks that this move, combined with some increase in advertising, would increase this year's unit by 25% How much could the president increase this year's advertising expense and learn the same $860.000 net operating income as lost year Complete this question by entering your answers in the tabs below. Regt Aeg 2 Reg Red A Ram Rec SA Kees Regs Assume the president expects this year's unit sales to increase by 10% Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? Round intermediate calculation and final answer to 2 decimal places) Not operating income increases by Prey 1 0f 16 Next > 1 04 Hai Answer cach question independency bed on the animale What the product's CM 2. Use the CM io to determine the break even point de Assume this year's unit sales and total sales increase by 47000 units and 53,700,000. See on change, how much will net operating income increase? 4-8. What is the degree of operating leverage based on last year's west 4-6. Assume the president expects this year's unit sales to increase by 10%. Using the degree of personaverage from what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 12% reduction in the sering price.combined wm & 500,000 increase in overning words a. If the sales manager is right, what would be this year's net operating income sees or implemented bif the salet manager's ideas are implemented, how much wil net operating income increase or decrease over to your 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $250 per un thinks that this move, combined with some increase in advertising, would increase this year's uit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $860,000 net operating income ms last year? Book Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 4 R46 ReSA R R6 The sales manager is convinced that a 12% reduction in the selling price, combined with a $66,000 increase in advertising would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income his ideas are implemented? (Do not round intermediate calculations) Nor operating income (s)