Stratford Company distributes a lightweight lawn chair that sells for $30 per unit Variable expenses are 40% of sales and fixed expenses total $489 600 annually Required: Answer the following independent questions 1 What is the product's CM per unit bus maripoti 2. Use the CM per urut to determine the break-even point in units C 3. The company estimates that sales will increase by $75,000 during the coming year due to increased demand By how much should net operating income increase? 4. Assume that the operating results for last year were as follows: Sales Less: Variable expenses Contribution margin Less Fixed expenses het operating income $1,020,000 400.000 612,000 $ 122,400 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 1 decimal place.) Degree of operating leverage b. The president expects sales to increase by 30% next year. By how much should net operating income increase? 5-a. Refer to the original data. Assume that the company sold 36,000 units last year. The sales manager is convinced that a 7% reduction in the selling price, combined with a $140,000 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.) Last Year Total Per Unit Proposed Total Per Unit Sales