Problem 8-1 Performing Basic CVP Analysis (LO1- CC4; LO2 - CC6, 7, 10) Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable expenses are $12 per unit, and fixed expenses total $526,500 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? Contribution margin ratio 2. Use the CM ratio to determine the break-even point in sales dollars. Break-even point in sales dollars 3. The company estimates that sales will increase by $100,000 during the coming year due to increased demand. By how much should net operating income increase? Increase in operating income