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Variable expenses are $8 per Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follow Sales Variable expenses Contribution margin Fixed expensen Net operating income $ 400,000 160,000 240,000 180,000 $ 60,000 Required: Answer each question Independently based on the original data: -2. Use the CM ratio to determine the break-even point in dollar sales, 3. Assume this year's unit sales and total sue ricrease by 3,750 units and $75,000, respectively, If the fixed expenses do not change, how much will net operating income increase 4-a. What is the degree of operating sverage based on last year's sales? 4-6. Assume the president expects yas year's unit shles to increase by 20%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convyted that a 10% reduction in the selling price, combined with a $30,000 increase in advertising, would increase this year's unit salchoy 25% a. If the sales manage right, what would be this year's net operating income if his ideas are implemented? b. If the sales meas are implemented, how much will net operating income increase or decrease over last year? Sint does not want to change the selling price. Instead, he wants to increase the sales commission by $1 per unit. He thinks that this move, combined some increase in advertising, would increase this year's unit sales by 25%. How much could the president increase this year's advertising expense and still earn the same $60,000 net operating income as last year? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Regs Reg 4A Reg 48 Req SA Reg 5B Req6 Assume this year's unit sales and total sales increase by 3,750 units and $75,000, respectively. If the fixed expenses do not change, how much will net o grating income increase? Net operating income by Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reque Reg 4A Reg 4B Req 5A Reg 38 Reg 6 The sales manager is convinced that a 10% reduction in the selling price, combined with a $30,000 increase in advertising, would increase this year's une sales by 25%. If the sales manager's ideas are implemented, how much will net operating Income increase or decreassiver last year? (Negative amounts should be input with a minus sign.) Increase (decreaso) to ling income Complete this question by entering Reg SB Reg 48 Reg SA Reg 6 Reg1 Reg 2 Regg Req 4A Assume this year's unit sales and total sales increase by 3,750 units and $75,000, respectively. If the fixed expenses do not change, how much will net og grating Income increase? Net operating income

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