w History Sun 1:02 AM 23 (Feether Friends-page 234)-5... Help Save &Exit Submit Check my work Feather Friends, Inc., distibutes a high-quality wooden birdhouse that sells for and fixed expenses total $200,000 per year. lts operating results for last year were as follows $40 per unit. Variable expenses are $20.00 per unit, Sales Variable expenses cContribution margin Pixed expenses Set operating iscome $ 960,000 480,000 280,000 s Required: Answer each question independenty based on the original data: 1. What is the product's CM ratio? 3. If this year's sales increase by $41000 and 4-a. What is the degree of operating leverage based on lest years sales? CM ratio to determine the break-even point in dollar sales point in dollar sales fixed expenses do not change, how much will net operating income increase? the president expects this year's sales to increase by 12%, using the degree of operating leverage from last yea, what 4b. Assume percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 13% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right b. Do you recommend implementing the sales manager's suggestions? a Itf the sales manager is right. what would be this year's net operating income if his ideas are implemented? ?Prev 1of2 Score answer> 808 r 3 5