Stratford Company distributes a lightweight lawn chair that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 annually Required: 1. What is the product's CM ratio? (Do not round intermediate calculations.) CM ratio 50 2. Use the CM ratio to determine the break-even point in sales dollars. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Break-even point n sales collars s 320,000 Break-even point in sales dollars point in sales dollars320,000 3. The company estimates that sales will increase by $52,000 during the coming year due to increased demand. By how much should net operating income increase? Net operating income increases by 4. Assume that the operating results for last year were as follows: Sales Variable expenses 3,240,000 1,620,000 Contribution margin Fixed expenses 1,620,000 160,000 Net operating income $1,460,000 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.) Degree of operating leverage Degree of operating leverage 1111 1.11 b. The president expects sales to increase by 10% next year. By how much should net operating income increase? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) I'm Cortana. Ask me anything e