Stratford Company distres a lightweight char that sells for $20 per unit Vartatile penes are ofte, and expenses $420,000 annually Required Answer the following independent question 1. What is the products CM per 2. Use the GM per unit to determine the book even point in its 3. The company estimates that sales will increase by $105 000 during the coming year due to increased demand Bytow much should net operating income increase! DP 11 Next > IN 11 c 9 ch 1 4. Asume that the results for a year were as follow 2003 View Contributor But perti - Compute the degree of operating leverage at the current level of sales Round your answer to 1 decimal place) b. The president expects sales to increase ty 20% next year. By how much should net operating income increase 5-a. Refer to the original atasan that the company solo 42.000 units last year. The manager convinced as reduction the sing price combined with a $152,000 cenen advertising expenditures would he isoles by JOX. Prepare two contribution forma come statements showing the results of operation, and one showing with results of operations would be the changes were made. Do not round Intermediate calculations. Round "Per Unitonwers to 2 decimal places) 5-b. Would you recommend that the company do as the sales manager sugests? Ye NO 6. Refer to the original data Assume again that the company sold 42.000 units last year. The president feels that it would be we to change the selling price Instead, she wants to increase the sales commission by 57 per unit. She thinks that this move.combined with some increase in advertising, would double annual unit sales. Bly how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach Incluso inadvertisement cost