an tog Northwood Company manufactures basketbols The company has a basis for $25 A present the ance small plant that it heavy on director workers. The expenses en totaling $15.00 per bak of which 80% labor cost Last year, ne company od 64,000 of these balls with the following result 1. Variable $10.00 birin Tips 47.00 Required 1. Compute fast year's CM ratio and the trunk even not in and the the degree of courwing leverage vel 2. Due to an increase in laborates, the company status mat next years laternes will rece w 5300 fotih change the place and the selling orice perballenas con 125.00, what we next yew's CMO and the boven contin bat? Refer to the data in ) above the expected change in to en ese company musete si pers besetbols enes espace now any till Wilfove to hear it** Como wants to maintain the same catast year is compted in termen who are must charge next year to cover the increased labor costs Refer to the original data. The company is cutting the construction of a new automated manding plant wouloslas variable expenses per ball by 40.00te would come ad expenses per yow to doute of now antis would be the company's new CM ratio and new break even point in bolis? all the new pants but how many bal wil have to be alonext year to earn the same ruterang income: 120.000 year! b. Astume the new plants butt and that next year the company manufactures and seis 64000 as he same numbers old year. Prepare a contribution format income statement and compute the eye of operating levere Answer is not complete Complete this question by entering your answers in the tabs below. R3 Hus Computea) at years to and the treak-even point is balls, and the presenting rape tinta Sales level and units to break event to the nearest whest and with anwars to comples Touran un to break even BODO bale 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 ballof which 60% is direct labor cost Last year, the company sold 64,000 of these balls, with the following results: Sales (64,000 balls) $ 1,600,000 Variable expenses Contribution margin 427.000 Net operating income $ 213,000 960.000 640,000 Tixed expenses 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 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 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, $213,000, 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 18). 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? a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income. $213,000, as last 6. Assume the new plant is built and that next year the company manufactures and sells 64,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg4 Reg 5 Reg 6 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? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even to the nearest whole unit.) CM Ratio Un sales to break even 2800 61.000 bats 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 64,000 of these balls, with the following results: Sales (64,000 balls) $ 1,600,000 Variable expenses 960,000 Contribution margin 640,000 Fixed expenses 427,000 Net operating income $ 213,000 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 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, $213,000, 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 18), 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, $213,000, as lost 6. Assume the new plant is built and that next year the company manufactures and sells 64,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 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, $213,000, as last year? (Round your answer to the nearest whole unit) Number of talls 60,85 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Req 4 Req 5 ReqE Refer again to the data in (2) above. The president feels that the company must Northwood Company wants to maintain the same CM ratio as last year (as comp per ball must it charge next year to cover the increased labor costs? (Round you Selling price Variable expenses Contribution margin Fixed expenses Net operating income 960,000 640,000 427,000 $ 213,000 Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the 2. Due to an increase in labor rates, the company estimates that next year's varia change takes place and the selling price per ball remains constant at $25.00, w point in balls? 3. Refer to the data in (2) above. If the expected change in variable expenses tak year to earn the same net operating income, $213,000, as last year? 4. Refer again to the data in (2) above. The president feels that the company mus Northwood Company wants to maintain the same CM ratio as last year (as compe 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 would slash variable expenses per ball by 40.00%, but it would cause fixed exper 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 earr year? b. Assume the new plant is built and that next year the company manufactures year). Prepare a contribution format income statement and compute the degre Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Rets Req 6A Refer to the original data. The company is discussing the construction of a new, auto plant would slash variable expenses per ball by 40.00%, but it would cause fixed exp plant is built, what would be the company's new CM ratio and new break-even point places and "Unit sales to break even to the nearest whole unit.) CM Ratio % Unit sales to break even balls $ 213,000 Net operating income Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating lev 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will incre change takes place and the selling price per ball remains constant at $25.00, what will be next year's C point in balls? 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many ba year to earn the same net operating income, $213,000, as last year? 4. Refer again to the data in (2) above. The president feels that the company must raise the selling price Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a). 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 manufact would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double 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 operati year? b. Assume the new plant is built and that next year the company manufactures and sells 64,000 balls year). Prepare a contribution format income statement and compute the degree of operating leverag Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req3 Reg 4 Req 5 ReqSA Req 6B If the new plant is built, how many balls will have to be sold next year to earnt Req 6A et operating incom last year? (Round your answer to the nearest whole unit.) Number of balls