By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change?

Learning Goal: I’m working on a business question and need an explanation and answer to help me learn. Feather Friends Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Vari- able expenses are $8 per unit,and fixed expenses total $180,000 per year Required: Answer the following independent questions:1.What is the products CM ratio?2. Use the CM ratio to determine the break-even point in dollar sales. 3. Due to an increase in demand, the company estimates that sales will increase by $75,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change?4. Assume that the operating results for last year were:
Requirements: 1 | .doc file