Coming up with different answers

9:6 PM Sat Nov 3 3.80 points Northwood Company manufactures basketballs The company has a bal that sols for $49. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling S34 30 per ball, of which 70% is direct labor cost. Last year, the company sold 58,000 of these bails, with the folowing results: Sales (58.000 balls) $2,842.000 1989.400 852.600 Fixed expenses Net operasng income Required: 1-a. Compute last years CM ratio and the break-even point in bails. (Do not round intermediate calculations) CM Ratio 1-b. Compute the the degree of operating leverage at last year's sales level. (Round your answer to 2 decimal places.) 2. Due to an increase in labor rates, the company estimates that next years variable expenses will increase by $4.90 per ball If this change takes place and the seling price per ball remains constant at $49.00, what will be next year's CM ratio and the break-even point in balls? (Do not round intermediate calculations.) 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, $147,000, as last year? (Do not round intermediate calculations. Round your answer to the nearest whole unit.) 4. Refer again to the data in (2) above. The president feells 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 seling price per ball must it charge next year to cover the increased labor costs? (Do not round intermediate calculations. Round your answer to 2 decimal places