Just answered 5A, 5B & 6.

5-HW Help Save& Exit Sub Check my wor Feather Friends, Inc, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales Variable expenses Contribution nargin Fixed expenses Net operating income s 2,160,000 1.080,000 ,080,000 160,000 920,000 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. If this years sales increase by $49,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last years sales? 4.b. Assume the president expects this year's 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 13% reduction in the selling price, combined with a S74,0 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 i b. Do you recommend implementing the sales manager's suggestions? increase in ac vertising, would