answer tbe required 1-6
Check my work 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 $1500 per ball, of which 60% is direct labor cost. Last year, the company sold 37,000 of these balls, with the following results 1,100,000 660,000 440,000 238,000 $ 202,000 Sales (37,000 ba11s) on margin Fixed e 1. Compute (a) last years 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, $202,000, 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 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, 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, $202,000, as last the new plant is built and that next year the company manufactures and sells 37,000 balls (the same number as sold last Check my work 2. Due to an increase in labor rates, the company estimates that next years variable expenses willincrease by $3.00 per ball f this change takes place and the selling price per ball remains constant at $25.00, what will be next years 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, $202,000, 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 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 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? 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, $202,000, as last b. Assume the new plant is built and that next year the company manufactures and sells 37000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage n by entering your answers in the tabs Complete this q Req 68 Req S Req 6A Req 3 Req 4 Req 2 Req 1 year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's Compute (a) last sales level. (Round "Unit sales to break even" to the n earest whole unit and other answers to 2 decimal places.) CM Degree of operating leverage Pre 3 of 7 Next Check my work 2. Due to an increase in labor rates, 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 $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, $202,000, 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 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 deta. 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. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $202,000, as last is built and that next year the company manufactures and sells 37,00o balls (the same number as sold last b. Assume the new plant year). Prepare a contribution format income statement and compute the degree of operating leverage. Com plete this question by entering your answers in the tabs below Req 6B Req 3 Req 4 Req 2 Req 1 years variable expenses will increase by $3.00 per ball. If to an increase in labor rat Due 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 n point in balls? (Round "CM Ratio" to 2 decimal places and Unit sales to break even" CM balls Check my work 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, change takes place and the selling price per ball remains constant at $25.00, what will be next years CM ratio and the break-evern point in balls? 3. Refer to the data in (2) above. year to earn the same net operating income, $202,000, 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 ba North must it charge next year to cover the increased labor costs? 5. Refer to the ori would slash variable expenses per 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, $202,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 37.000 balls (the same n year). the company estimates that next year's variable expenses will increase by $3.00 per ball. If this If the expected change in variable expenses takes place, how many balls will have to be sold next Company wants to maintain the same CM ratio as last year (as computed in requirement la), what selling price per ball ginal data. The company is discussing the construction of a new, automated manufacturing plant. The new plant ball by 40.00 %, but it would cause fixed expenses per year to double. If the new plant is built, what umber as sold last 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 6A Req 5 Req 1 Req 2 Req 3 Req 4 Req 6B Refer to the data in Required (2). 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, $202,000, as last year? (Round your answer to the nearest whol unit.) Prev 3 of 7 EEENext> 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, $202,000, 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, 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, $202,000, as last b. Assume the new plant is built and that next year the company manufactures and sells 37000 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 68 Req 3 Req 5 Req 6A Req 1 Req 2 Req 4 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.) Show less CM Ratic Unit 3 of 7Next> 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, $202,000, as last b. Assume the new plant is built and that next year the company manufactures and sells 37,000 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 6B Req 3 Req 5 Req 6A Req 4 Req 1 Req 2 Assume the new plant is built and that next year the company manufactures and sells 37,000 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.) of o Next > K Prev 3 of 7
