m 5-23A Basics of CVP Analysis [1051, 1053, 1054, 105. 5. I o5-81 Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year 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 dollar sales Break-even point in sales dollars 3. Due to an increase in demand, the company estimates that sales will increase by $43,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fxed expenses do not change? et operating income