Please Solve 3 and 5a-5c

Complete this question by entering your answers in the tabs below. The sales manage is convinced that a 12% reduction in the selling grice, combined with a $74,000 increase in acvertising. wovid incresse this year's unit saies by 25%. If the eaves mansger ss right, what would be this vear's net operating incsme if Censplete this question by entering your answers in the tabe below. The sales mansjer ir cosvinced that a 12% reduction in the seling peice, combined with a $74,000 increase in advertising. would increase this year's unt sales by 25%. If the sales masagars ideas are implemented, fow moch will net operating Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit: Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Required: 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 60,000 units and $7,200,000, 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? 4b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in not 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 $74,000 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 $1.70 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 $1,320,000 net operating income as last year? Complete this question by entering your answers in the tabs below. 2ssume this year's unit sales and total sales increase by 60,000 units and $7,200,000, respectively, it tha fixed expenses do nat change, how moch wil net operating inceme increase? (Do not reund ineermedate calcutations.) Complete this question by entering your answers in the Labi below. he president does not want to chanpe the seling prioe. Watead, Me wams to increase the saies commisson by $1.70 at rear? (Do not rousd infermesate caiculetions.)