Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit and fixed costs total $480,000 annually Required: Answer the following independent questions: 1. What is the product's CM ratio? CM 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 $65,000 during the coming year due to increased demand. By how much should operating income increase? Operating income increases by 4. Assume that the operating results for last year were as follows: Sales Variable expenses $1,000,000 424,000 Contribution margin Fixed expenses 576,000 480,000 Operating income $ 96,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverage b. The president expects sales to increase by 14% next year. By how much should operating income increase? Operating income increases by 6. Refer to the original data. Assume again that the company sold 22,500 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 $2 per unit. He thinks that this move, combined with some Increase in advertising, would increase annual unit sales by 50%. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach. The amount by which advertising can be increased is