Please complete part 5-a , column (proposed total and proposed per unit)

Return to question 1 Stratford Company distributes a lightweight lawn chair that sells for $20 per unit. Variable expenses are 30% of sales, and fixed expenses total $210,000 annually. Required: Answer the following independent questions 1. What is the product's CM per unit? Ants Answer is complete and correct. Contribution margin por un 14 2. Use the CM per unit to determine the break-even point in units. Answer is complete and correct. 2. Use the CM per unit to determine the break-even point in units. Answer is complete and correct. 15,000 Break-even point in units 3. The company estimates that sales will increase by $30,000 during the coming year due to increased demand. By how much should net operating income increase? Answer is complete and correct. Increase in operating income $ 21,000 4. Assume that the operating results for last year were as follows: Sales LeNt Variable expenses Contribution margin Last Fixed expenses Net operating income $500,000 150,000 350,000 210,000 $140,000 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) Answer is complete and correct. Degree of operating leverage 2.5 Return to question b. The president expects sales to increase by 20% next year. By how much should net operating income increase? Answer is complete and correct. Increase in operating income $ 70,000 5-a. Refer to the original data. Assume that the company sold 27,000 units last year. The sales manager is convinced that a 11% reduction in the selling price, combined with a $62,000 increase in advertising expenditures, would increase annual unit sales by 40%. Prepare two contribution format income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Answer is not complete. Last Yoar Proposed . Return to question 5-a. Refer to the original data. Assume that the company sold 27,000 units last year. The sales manager is convinced that a 11% reduction in the selling price, combined with a $62,000 increase in advertising expenditures, would increase annual unit sales by 40%. Prepare two contribution format income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round Intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Answer is not complete. Last Year Proposed Total Per Unit Total Per Unit $ 540,000 $ 20.00 162,000 6.00 378,000 $ 14.00 210,000 $ 168,000 DO