Soft Feathers, Inc., distributes a high-quality wooden birdhourse that sells for PhP1,000 per unit. Variable costs are PhP400 per unit, and fixed costs total PhP9,000,000 per year. Required: Answer the following questions: What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales amount. 3. Due to an increaes in demand, the company estimates that sales will increase by PhP3,750,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming fixed costs do not change? 4. Assume that the operating results for last year were: Sales 20,000,000 8,000,000 Variable expenses Contribution margin 12,000,000 Fixed expenses 9,000,000 Net operating income 3,000,000 The president expects sales to increase by 20% next year. By what percentage and peso amount should net operating income increase? 5. Refer to the original data. Assume that the company sold 18,000 units last year. The sales manager is convinced that a 10% reduction in the selling price, combined with a PhP1,500,000 increase in advertising, would cause annual sales in units to increase one-third.