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?

Contribution margin per unitBreak-even point in unitsIncrease in operating incomeSales $1, 020, 900 Less: Variable expenses 408, 000 Contribution margin 612,900 Less: Fixed expenses 489,600 Net operating income $ 122,400Degree of operating leverageIncrease in operating incomeLast Year Proposed Total Per Unit Total Per Unit SalesIncrease in advertisement cost