2 Northwood Company manufactures basketbalis. The company has a barat sells for $25. At present the ball is manufactured in a plant trees heavily on direct labor workers. Thus, Variable expenses are high, totaling $15.00 per ball of which 60% is direct Labor cost Last year, the company sold 45,000 of these balls with the following results: 51. 15.00 Ver 160,00 Required: 1 Compute(a) last years CM ratio and the break even point in baland (b) the degree of operating leverage at last year's sales level 2. Due to an increase in laborates the company estimates that next years variable expenses will increase by $300 per ball if this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break even point in balls 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, S142000, as last year 4 Refer again to the data in (2) above the president feels that the company must raise the selling price of its basketballs Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement ta}, what selling price per ball 5. Refer to the original data The company is discussing the construction of a new, automated manufacturing plant. The new plant would stosh variable expenses per ball by 40.00% but it would cause foed expenses per year to double. If the new plant is built what would be the company's new CM ratio and new break even point in bat? 6. Refer to the data in (5) above the new plant is built, how many balls we have to be sold next year to earn the same net operating income, 142,000, as fast year? b. Assume the new plant is built and that next year the company manufactures and sells 46,000 balls the same number as sold last year Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Reg R4 Heg GA Red 60 Compute(a) last year's CM ratio and the break even point in baland (b) the degree of operating leverage at last year's se level Roundunt sales to break even to the nearest whole unit and other answers to 2 decimal puces) Complete this question by entering your answers in the tabs below. Reg Reg 6 Reg 65 Tea 1 Reg 2 Reg 3 Reg 4 Compute(a) last year's CM ratio and the break even point in balls, and (b) the degree of operating leverage at last year's sales level. (Round "Unit sales to break even to the nearest whole unit and other answers to 2 decimal places.) CM Ratio Unit sales to break even Degree of operating leverage bals Reg 2 > CHS Exeroes o 2 10 1 Computea last year's CM ratio and the break even point in balls, and (b) the degree of operating leverage at last year's sales levet 2. Due to an increase in labor rates, the company estimates that next years variable expenses will increase by $300 per ball if this change takes place and the selling price per ball remains constant at $25.00 what will be next year's CM ratio and the break even point in baie Refer to the data in (2) above in the expected change in vantable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, 5142,000, as last year? Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketball, if Northwood Company wants to maintain the same CM ratio as last year as computed in requirement to what selling price per ball must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would stash variable expenses per ball by 40.00% but it would cause fixed expenses per year to double. If the new plant is built what would be the company's new CM ratio and new break even point in balls? 6. Refer to the data in (5) above all the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $142,000, as last year? Assume the new plant is built and that next year the company manufactures and sells 46,000 balls (the same number as sold laut year) Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Reg Reg 2 Red Reg4 Rus Red A Reg 68 Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. 11 this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break even point in balls? (Found CM Ratoto 2 decimal places and "unt sales to break even to the nearest wholt unit) CM Ratio Lint a to break even balls 2 Required: 1 Compute(a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $300 per ball, ift change takes place and the selling price per ball remains constant at $2500, what will be next year's CM ratio and the break-eve point in batis 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold ne year to earn the same net operating income, 5142000, as last year? 4 Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. It Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement ta), what selling price per bu must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plan would stash variable expenses per ball by 4000% but it would cause fixed expenses per year to double. If the new plant is built would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in (5) above a If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, 5142,000, as ta b. Assume the new plant is built and that next year the company manufactures and sells 46.000 balls (the same number as sold year) Prepare a contribution format income statement and compute the degree of operating leverage Weference Complete this question by entering your answers in the tabs below. Reg! Reg 2 Reg 3 Reg 4 Reg 5 Reg 6A Red B Refer to the data in Required (2). If the expected change in variable expenses takes place, how many balls will have to be wold next year to earn the same net operating income, $142,000, as last year? (Round your answer to the nearest whole unit. 3 Rog 2 Reg 4 > 2 10 pe Required Computer la list year's CM ratio and the break even point in balls, and (b) the degree of operating leverage at last year's sales level 2. Due to an increase in laborates the company estimates that next year's variable expenses will increase by $300 per ball. If the change takes place and the selling price per ball remains constant at $25.00. what will be next year's CM ratio and the break-even point in balls 3. Refer to the data in (2) above the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $142.000, as last year? 4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballsIf Northwood Company wants to maintain the same CM ratio as last year as computed in requirement to), what selling price per bal 5 Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would stash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built what would be the company's new CM ratio and new break even point in balls? 6. Refer to the data in (5) above all the new plant is built, how many balls will have to be sold next year to earn the same net operating income, 5142,000, as last year? Assume the new plant is built and that next year the company manufactures and sells 46,000 balls (the same number as sold last year) Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Hea Req Reg2 Rog Reas Reg 6 Reg Refer again to the data in Required (2). The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement la), what selling price per ball most it charge next year to cover the increased labor couts? (Round your answer to 2 decimal places) Ch 5 Enes 2 10 2.Dan increase in laborates, the company estimates that next years variable expenses will increase ty $3.00 per ball if this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break even Refer to the data in (2) above if the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, 5142000, is fast year? Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketball Northwood Company wants to maintain the same CM atas last year as computed in requirement to), what selling price per ball mustit charge next year to cover the increased labor costs 5 Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 4000, but it would cause fixed expenses per year to double. If the new plant is built what would be the company's new CM ratio and new break even point in balls? Refer to the data in (5) above at the new plant is built how many balls will have to be sold next year to earn the same net operating income, $142,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sell 16,000 balls the same number as sold last year. Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Hea Flag 2 Reg Reg4 Reg 5 ROGA Reg 60 Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break even point in balls? (Round "CM Ratio" to 2 decimal places and unit sales to break even to the nearest whole unit) slawless CM Ratio Unit sales to break even balls Reg 4 Req6A > 2 Required Computea fast years CM ratio and the break-even point in balls, and the degree of operating leverage at last year's sales level 2e to an increase in laborates the company estimates that next years variable expenses will increase by $3.00 per ball If this change takes place and the selling price per ball remains constant at $2500, what will be next year's CM ratio and the break even pontball 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next 4. Refer again to the data in (3) above. The president fees that the company must raise the selling price of its basketball Northwood Company wants to maintain the same CM ratio as last year las computed in requirement a), what selling price per bal must it charge next year to cover the increased labor cost 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00% but it would cause fixed expenses per year to double if the new plant is built what would be the company's new CM ratio and new break even point in balls? 6. Refer to the data in (5) above all the new plant is built how many balls will have to be sold next year to earn the same net operating income, $142,000, as last year? bAssume the new plant is built and that next year the company manufactures and sells 46,000 balls (the same number as sold tast year) Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. 2 Red Reg4 Reg Reg 6 Red 50 If the new plant is built how many balls will have to be sold next year to earn the same net operating income, $142,000, as last year?(round your answer to the nearest whole unit 2 2. Due to an increase in laborates the company estimates that next years variable expenses will increase by $300 per ball. If this change des place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even 3 Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating come. $142,000, as last year? 4. Refer again to the data in (2) above the president feels that the company must raise the selling price of its basketball Northwood Company wants to maintain the same CM atoastast year as computed in requirement to), what selling price per ball must it charge next year to cover the increased fabor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would stash variable expenses per ball by 40.00, but it would cause foued expenses per year to double if the new plant is built who would be the company's new CM ratio and new break even point in ba? 6. Refer to the data in (5) above a. If the new plant is built how many balls will have to be sold next year to earn the same net operating income, $142,000, as last ye b Assume the new plant is built and that next year the company manufactures and sells 46,000 balls (the same number as sold last year Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below, Reg 1 Reg2 Red Red Regs Red Reg 6B Assume the new plant is ball and that next year the company manufactures and sells 46,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage (round "Degree of operating average to 2 decimal places) Northwood Company Contribution come Statement Donloverage