2. 5.00 points Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $24.50 per ball, of which 70% is direct labor cost. Last year the company sold 57,000 of these balls, with the following results: Sales (57.000 balls 1,995.000 1,396,500 Variable expenses 598,500 Contribution margin Fixed expenses 493.500 Net operating income 05,000 Required: 1-a. Compute the CM ratio and the break-even point in balls. (Do not round intermediate calculations CM Ratio Unit sales to break even balls 1-b. Compute the the degree of operating leverage at last year's sales level (Round your answer to 2 decimal places.) operating