Stratford Company distributes a lightweight lawn chair that sells for $24 per unit. Variable expenses are $6 per unit, and fixed expenses total $594,000 annually. Required Answer the following independent questions 1. What is the product's CM ratio? Contribution margin ratio 2. Use the CM ratio to determine the break-even point in sales dollars Break-even point in sales dollars 3. The company estimates that sales will increase by $125,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income 4. Assume that the operating results for last year were as follows Sales Less: Variable expenses Contribution margin $1,056,000 264,000 792,000 Less: Fixed expenses 594,000 Net operating income $198,000 a. Compute the degree of operating leverage at the current level of sales. (Round your answer to1 decimal place.) Degree of operating leverage b. The president expects sales to increase by 24% next year. By how much should net operating income increase? Increase in operating income