al Accounting (A mework Assignment ezto.mheducation.com Question 1-2.3 Homework Assignment Last Year Minden Company duced A Northwood Company Manufactures Bask Help Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies 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 38,000 of these balls, with the following results: Sales (38,eee balls) Variable expenses Contribution margin Fixed expenses Net operating income Required: 5 950,000 570,000 380,000 264,000 $116,000 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 level. 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $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 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, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement fa), 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 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. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 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. Req1 Reg 2 Req3 Reg 4 Reg 5 Reg Reg go Prev 1 of 6 Next > MacBook Ap rial Accounting A mework Assignment t Ask 10 10 ezto.mheducation.com Question 1-2.3 Homework Assignment Last Year Minden Company Introduced A c C Northwood Company Manufactures Ba 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 nex year to earn the same net operating income, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per balk 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 slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, w 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, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 balls (the same number as sold 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. Print Req 1 Reg 2 Req3 Mc Graw SA Reg 4 Req 5 Req 6A Req 68 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 93 balls 2> Previ 1 of 6 Next > MacBook Av S 76 4 5 6 7 W E R T Y 27 .00 8 9 8 0 ezto.mheducation.com gerial Accounting (A... Question 1-2.3 Homework Assignment Last Year Minden Company Introduced A... Northwood Company Manufact Omework Assignment 1 Ask P 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 sol year to earn the same net operating income, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement fa), what selling price pe 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 p would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is bu 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, $116,000, a year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 balls (the same number as 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. Req 1 Req 2 Req 3 Req 4 Req 5 Req A Req 68 Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. 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? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.) CM Ratio Unit sales to break even balls Mc Graw 22 93 ga $ 4 85 Prev 1 of 6 Next > MacBook Air A 6 & 29 7 30 ST 8 00 Q W E R T Y U 6 al Accounting A mework Assignment Ask Print ezto.mheducation.com Question 1-2.3 Homework Assignment Last Year Minden Company Introduced A... Saved C Northwood Company Manufactures a 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If 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-ev 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 no year to earn the same net operating income, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ba 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 slash variable expenses per ball by 40.00%, 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, $116,000, as las year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 balls (the same number as sold 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. Mc Graw Hill Req 1 Req 2 Req 3 Req 4 Req 5 Reg 64 Req 68 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, $116,000, as last year? (Round your answer to the nearest whole unit.) Number of 42 W 3 900 2 54 60 Req> Prev 1 of 6 Next > MacBook Air 15 96 6 4P 7 00->> 8 E R T Y D " 94 6 O 0 c waw ezto.mheducation.com Accounting (A Question 1-2.3 Homework Assignment Last Year Minden Company Introduced A Saved c Northwood Company Manufactures Bas ework Assignment 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $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 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, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), 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 slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, wh 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, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 balls (the same number as sold las 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. 92 Req 1 Req 2 Req 3 Req 5 Reg 6A Req 68 Refer again to the data in (2) above. 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 1a), what selling price per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.) Selling pro 13 550 5 4 Prev 1 of 6 Next > Maetlook Aut 5 6 & 49 7 W E R T Y U L 00 24 0 88 B K Accounting (A work Assignment ezto.mheducation.com Question 1-2.3 Homework Assignment Last Year Minden Company Introduced A C Northwood Company Manufactures Bask 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $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 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, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement ta), what selling price per ball must it charge next year to cover the increased labor costs? T 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. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 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. Req 1 Reg 2 Req 3 Req 4 Reg6A Req6B Show less A 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.) CM Ratio Unit sales to break even balls 92 98 3 Bo MocBook Al 5 A 6 & 7 7 5 14 W E R T Y D 8 THI 6 O 0 D ezto.mheducation.com Accounting A Question 1-2.3 Homework Assignment- Last Year Minden Company introduced A CNorthwood Company Manufactures Besk work Assignment Seved 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $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 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, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement faj, what seiling 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 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. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 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. Hor Red 1 Req 2 Req3 Req 4 Req 5 Reg If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? (Round your answer to the nearest whole unit.) Number of bats 84 W # 3 11O 44 95 MacBook All A 6 29 7 20 8 E R T Y U L 9 8 0 0 G H J K ezto.mheducation.com c Accounting A Question 1-2.3 Homework Assignment.. Last Year Minder Company Induced A Northwood Company Manufactures Ba Seved work Assignment 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $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 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, $116,000, 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 basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? He 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. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $116,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 38,000 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. Req 1 Req 2 Req3 Reg 4 Req5 Req 6A peg 68 Assume the new plant is built and that next year the company manufactures and sells 38,000 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 leverage" to 2 decimal places.) Northwood Company Contribution Income Statement $ Degree of operating teverage Mac Book All W S 3 4 5 6 7 8 W E R T Y L L H NO L 88 K 0 0