Tamanna drug store distributes a supreme-quality oximeter that has a selling price of $ 35 per unit. Variable expenses are $17 per unit, and fixed expenses total $210,000 per year. Its operating results for last year were as follows: Sales $700,000 Variable expense 340,000 Contribution Margin 360,000 210,000 Fixed Expense Net operating income 150,000 Required: (10) Answer each question independently based on the original data: 1. What is the product's variable expense ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. The managing director feels that if they make online advertising for $5,000 per month, it would increase sales volume to 21,000 units. Should they make online advertising? 4. The sales manager would like to pay salespersons a sales commission of $5 per unit sold, 4. The sales manager would like to pay salespersons a sales commission of $5 per unit sold, rather than the fixed salaries that now total $100,000 per month. The sales manager is confident that the change would increase monthly sales volume by 10% per month. Should the change be made? 5. Compute the company's margin of safety in both dollar and percentage terms. 6. a. What is the degree of operating leverage based on last year's sales? b. Assume the president expects this year's sales to increase by 30%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 7. The company is considering the use of high-quality components, which would increase variable costs by $2 per unit. However, the sales manager predicts that using high-quality components would increase sales to 25,000 units per month. Should the high-quality components be used? 8. What is the total contribution margin at the break-even point