Pet Haven Pty Ltd distributes a high-quality dog house that sells for $50 per unit. Variable expenses are $15 per unit, and fixed expenses total $448,000 per year. Its operating results for last year were as follows: Sales $800,000 Variable expenses 240,000 Contribution margin 560,000 Fixed expenses 448,000 Net operating incomo $112.000 Required: Answer each question independently based on the original data: 1. Determine the break-even point in dollar sales. (1 mark) 2. Assume this year's unit sales and total sales increase by 2,000 units and $100,000, respectively. If the fixed expenses do not change, how much will net operating income increase? (1 mark) 3. Assume the president expects this year's unit sales to increase by 15%. Using the degree of operating loverage from last year, what percentage increase in net operating income will the company realise this year? How much would this increase be in dollars? (2 marks) 4. The sales manager is convinced that a 5% reduction in the selling price, combined with a $52,000 increase in advertising, would increase this year's unit sales by 25%. What would be this year's not operating income if his ideas are implemented? (1 mark) For the toolbar, press ALT+F10 (PC) or ALT-FN-F10(Mac) BIVS Paragraph Arial 10pt XQ Moon an ON . DO ga . 858 Dll F 5 80 2 + A dele 8 7 9 O 00 # 3 $ 4 5 6 { [ 0