KINDLY ANSWER THE WHOLE QUESTION, THIS IS ONE QUESTION ENCOMPASSING DIFFERENT PARTS, BUT ITS STILL ONE QUESTION

Stratford Company distributes a lightweight lawn chair that sells for $25 per unit Variable expenses are $10 per unit, and fixed expenses total $135,000 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? Contribution margin ratio % 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars 3. The company estimates that sales will increase by S40,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income 4. Assume that the operating results for last year were as follows: $ 675,000 270,000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income 405,000 135,000 $ 270,000 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) Degree of operating leverage b. The president expects sales to increase by 25% next year. By how much should net operating income increase? Increase in operating income 5-a. Refer to the original data. Assume that the company sold 29,000 units last year. The sales manager is convinced that a 10% reduction in the selling price, combined with a $76,000 increase in advertising expenditures, would increase annual unit sales by 40%. Prepare two contribution format income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Last Year Total Per Unit Proposed Total Per Unit Sales 5-b. Would you recommend that the company do as the sales manager suggests? Yes 6. Refer to the original data. Assume again that the company sold 29,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $3 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Increase in advertisement cost