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NEED HELP WITH 5a , 5b, and 6 please!! Eeather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses

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NEED HELP WITH 5a , 5b, and 6 please!!

Eeather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 ber unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Required: Answer each question independently based on the original data: What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 51,000 units and $2,040,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a $77,000 increase in advertising, would ncrease 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 implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 5. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.50 per unit. He hinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25%. How much could the oresident increase this year's advertising expense and still earn the same $320,000 net operating income as last year

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