Stratford Company distributes a lightweight lawn chair that sells for $20 per unit. Variable expenses are 40% of sales, and fixed expenses total $330,000 annually. Required: Answer the following independent questions: 1. What is the product's CM per unit? 2. Use the CM per unit to determine the break-even point in units. 3. The company estimates that sales will increase by $70,000 during the coming year due to incressed demand. By how much should net operating income increase? 5-b. Would you recommend that the company do as the sales manager suggests? Yes No 6. Refer to the original data, Assume again that the company soid 35,000 units last year, The president feels that it would be unwise to change the selling price. Instead, she wants to increase the sales commission by $3 per unit. She thinks that this move, combined with some increase in advertising. would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement, use the incremental analysis approach. 4. Assume that the operating results for last yeor were as follows: a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal plece.) b. The president expects sales to increase by 20% next year. By how much should net operating income increase