Problem 02: CVP Applications, contribution margin and Degree of operating leverage - 33% Dog Dandy distributes a dog collar made of wooden beads that sells for $40 per unit. varuble expenses are $20 per unit, and fored expenses total $120,000 per year. its operating results for last vear were as follows: Required: Answer each of the folowing independent questions bused on the original data. 1. What the product's com catio? 2. Wse the com ratio in determine the break-even point in dollar cules 3 Aswime this vear's unit sales and total sles fgorase by $50,000. If the fixed expenses do not change, how much wit opecating income decrease? 4 What is the depree of eqeerating leverage toned on lent year's sales? 5. Awume this vear's unit wes wil decrease by zon next year. Uhing the degree of operating leverage from last vear, what percentage deciease in operatng incoms will the company incur this vear? 6. The wet manager a convinced that a 10x ieduction in the weline price, combined wath a 570,000 incresie in regestions? Why