Only need 5A, 5B, 6

Feather Friends, Incorporated, distributes a highquality wooden birdhouse that sells for $120 per unit Variable expenses are $6000 per unit and fixed expenses total $180,000 per year Its operating results for last year were as follows Sales $3,240,800 Variable expenses 1.620.000 Contribution margin 1,620,000 Fixed expenses 180,000 Net operating income $ 1,440,000 15014 ant entes Required: Answer each question independently based on the original doto 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 soles and total sales increase by 49.000 units and $5,880.000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-0 What is the degree of operating leverage based on last year's sales? 4.6Assume the president expects this year's unit sales to increase by 15% Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a $64.000 increase in advertising, would increase this year's unit sales by 25% a. If the sales manager is nght, 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 wil net operating income increase or decrease over last year? 6. The president does not want to change the selling price Instead, he wants to increase the sales commission by $200 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% How much could the president increase this year's advertising expense and still earn the same $1.440,000 net operating income as last year? Complete this question by entering your answers in the tabs below. 5. The sales manager is convinced that a 10% reduction in the selling price, combined with a $64.000 increase in advertising. Increase 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 wil net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $200 per thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% How much co president increase this year's advertising expense and still earn the same $1.440,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req 48 Reg SA Reg 55 Req6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $64,000 Increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? (Do not round intermediate calculations.) Net operating income foss) $ 949,800 wuwuh Cound the y expense and still earn the same $1440,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Reg SA Red Red 6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $64,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? (Negative amounts should be input with a minus sign) Increase (decrease to not operating income WY 6. The president does not want to change the selling price. Instead, he wants to increase the sales como by $2.00 per He thinks that this move, combined with some increase in advertising, would increase this year's unit sales by 25% How much could the president increase this year's advertising expense and still earn the same $1.440,000 not operating income as last year book Complete this question by entering your answers in the tabs below. Pin Reg1 Meg Reg Meg 4 Welce 40 HOSA The president does not want to change the selling price Instead, he wants to increase the sales commission by 2.00 unit. He thinks that this move, combined with some increase in advertising, would increase this year's unit sales ty. How much could the president increase this year's advertising expense and still earn the same 51,400,000 net operating income as last year? (Do not round intermediate calculations.) The wount by which is can be consis 5 56700