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Need answers to 5 and 6 Problem 5-23 Basics of CVP Analysis [LO5-1, LO5-3, LO5-4, LO5-5, LO5-8] Feather Friends, Inc., distributes a high-quality wooden birdhouse

image text in transcribedimage text in transcribedimage text in transcribedNeed answers to 5 and 6

Problem 5-23 Basics of CVP Analysis [LO5-1, LO5-3, LO5-4, LO5-5, LO5-8] Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $180,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? 50% CM ratio 2. Use the CM ratio to determine the break-even point in dollar sales 360,000 Break-even point in sales dollars 3. Due to an increase in demand, the company estimates that sales will increase by $45,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change? Net operating income increases by 22.500

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