Stratford Company distributes a lightweight lawn chair that sells for $15 per unit. Variable expenses are 40 of of siles, and fixed expenses total $198.000 annualiy. Required: Answer the following independent questions: 1. What is the prodicts c M pes init? 2. Uise the CM peri unit to deteimine the breakeven point ial units. ment opetating iticonie incietsiel 4. Assume that the operating results for last year were as follows: a. Compute the diegree of operating leverage at the cument lewel of sales: 5-a. Refer to the original data. Assume that the company sold 28,000 units last year. The sales manager is corvinced that a fork results of operatio 5-b. Would you tecommend that the compony do as the soles maniger swggests? 5.b. Would you recommend that the company do as the sales manoger suggests? Yes No 6. Refer to the originat data. Assume again that the company sold 28,000 units last yece the president feels that it woild be urwise to ctange the selling price. Instead, she wants to increose the sales commission by 32 per unit. Stie thenks that this nove contined with unchanged? Do not piepare an income statement unt soles By how much could odvertising be increased with profits remlening