ball that sells for $25 Ar present, the ball is manufactured in a are high, totaling $15.00 per tall, ut which 60% is direc 100 of these balls win the following results chan 335,000 229,008 105,488 ar's CM ratio and the break-even point in balls, and ( the degree of operating leverage at last year's sales level. Increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball, if this place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break the data in requirement 2. If the expected change in variable expenses takes place, how many balls will have to be sold earn the same net operating income, $105,400, as last year? to the data in requirement 2. The president feels that the company must raise the selling price of its basketballs f any wants to maintain the same CM ratio as last year (as computed in requirement ta), what selling price per ball next year to cover the increased labor costs? to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant sh variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what be the company's new CM ratio and new break even point in balls? to the data in requirement 5 the new plant is built, how many bails will have to be sold next year to earn the same net operating income, $105,400, as last b. Assume the new plant is built and that next year the company manufactures and sells 33,500 balls (the same number as sold last year Prepare a contribution format income statement and compute the degree of operating leverage.