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Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 10% ? 2. What is the revised net operating income if the seling price decreases by $120 per unit and the number of units sold increases by 22% ? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9.000, and the number of units sold decreases by 8% ? 4. What is the revised net operating income if the seling price per unit increases by 10%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13% ? Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 53,000 units and $6,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4.b. Assume the president expects this year's unit sales to increase by 17\%. 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 convinced that a 12% reduction in the selling price, combined with a $76,000 increase in advertising. would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.50 per unit. He thinks that this move, combined with 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 eam the same $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The sales manager fo convinced that a 12% reduction in the selling price, combined with a $76,000 increase in advertising. would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? (Do not round intermediate calculations.) Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 53.000 units and $6,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4. . What is the degree of operating leverage based on last year's sales? 4.b. Assume the president expects this year's unit sales to increase by 17\%. 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 convinced that a 12% reduction in the selling price, combined with a $76,000 increase in advertising. would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price Instead, he wants to increase the sales commission by $2.50 per unit. He thinks that this move, combined with 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 $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The sales manager is convinced that a 12% reduction in the selling price, combined with a $76,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? (Negative amounts should be input with a minus sign.) 1. What is the product's (M ratio? 2 Use the CM ratio to determine the break-even point in dollar sales 3. Assume this year's unit sales and total sales increase by 53.000 units and $6,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 17%. 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 convinced that a 12% reduction in the selling price, combined with a $76,000 increase in advertising. would increase this year's unit sales by 25% a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.50 per unit. He thinks that this move, combined with 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 $1,420,000 net operating income as last year? Complete this question by entering your answers in the tabs below. The president does not want to change the seling price, Instead, he wants to increase the sales commission by $2.50 per unit. He thinks that this move, combined with 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 stili earn the same $1,420,000 net operating income as last year? (Do not round intermediate calculations.)