oints *Book Prim Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows Sales Variable expenses Contribution margin Fixed expenses Net operating incone Required: $1,000,000 500,000 500,000 160,000 $340,000 Answer each question independently based on the original data 1. 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 45,000 units and $1.800,000, respectively if the fixed expenses do not change, how much will net operating income increase? 4a What as the degree of operating leverage based on last year's sales? 4-b Assume the president expects this year's unit sales to increase by 13% Using the degree of operating leverage from last year what percentage increase in net operating income will the company realize this year? The sales manager is convinced that a 10% reduction in the selling price, combined with a $73.000 increase in advertising, would increase this years unit sales by 25% If the sales manager is not what would be this year's net operating income it is ideas are implemented of the ssies mantiger's ideas are implemented, how much will net operating income increase.oc decrease over fast year