Required:

Answer each question independently based on the original data:

a. What is the product's CM ratio? Use the CM ratio to determine the break-even point in dollar sales.

b. If this year's sales increase by $56,000 and fixed expenses do not change, how much will net operating income increase What is the degree of operating leverage based on last year's sales?

c. Assume the president expects this year's sales to increase by 17%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year?

d. The sales manager is convinced that a 13% reduction in the selling price, combined with a $60,000 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 you recommend implementing the sales manager's suggestions?

e. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,340,000 net operating income as last year?

Above is what I have currently answered.

Below are the last parts to the question I need help with.

Thanks for your help in advance!

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 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 income $3,888,eee 1,59e,99e 1,59e,99e 168,99e $ 1,34,88 Answer is not complete Complete this question by entering your answers in the tabs below Req 4 Req 6A Req 1 Req 2 Req 3 Req 5 Req 6B Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales level. (Round "Unit sales to break even" to the nearest whole unit and other answers to 2 decimal places.) 40.00 % CM Ratio Unit sales to bresk even Degree of operating 37300 balls 2.99 leverage K Req 1 Req 2 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 6A Req 1 Req 3 Req 5 Req 6B Req 2 Req 4 Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? (Round "CM Ratio to 2 decimal places and "Unit sales to break even" to the nearest whole unit.) 28.00 % 53.285 balls CM Ratio Unit sales to break KReq 1 Req 3 > Answer is not complete Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6B Req 6A Refer to the data in Required (2). If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $187,000, as last year? (Round your answer to the nearest whole unit.) 80,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2 Req 5 Req 6A Req 1 Req 3 Req 4 Req 6B Assume the new plant is built and that next year the company manufactures and sells 56,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. (Round "Degree of operating laverage to 2 decimal places.) operating leverage. (Roung or sold Northwood Company Contribution Income Statement gree of operating leverage