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 30%, but it would cause fixed expenses per year to increase by 76%. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls? (Do not round intermediate calculations. Round "Unit sales to break even" to the nearest whole unit.) % CM Ratio Unit sales to break even balls 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 $21.00 per bal of which 60% is direct labor cost Last year, the company sold 41,000 of these bals, with the following results Sales (41,000 bis Variable expenses Contribution margin Fixed expenses Not operating income $1,435,000 861 000 574,000 420.000 $ 154,000