Could you please explain the questions below? Thanks!

15 points skipped eBook Hint Prlnl References Mc Graw Hill 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 52.000 of these balls, with the following results: Sales (52,000 balls} $ 1,300,000 Variable expenses 1'30, 000 Contribution margin 520, 000 Fixed expenses 321, 000 Net: operating income $ 199- 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. lfthe expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $199,000, 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 Emir 1 of 2 5!! Next > 15 points Slapped eBook Hint Prlnt References Mc Graw Hill 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 xed 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? 5. 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, $199,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 52.000 balls (the same number as sold last year]. Prepare a contribution format income statement and compute the degree of operating leverage. Complete tllls question Iw entering your m In the tabs bdow. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6A Req 63 Assume the new plant is bullt and that next year the company manufactures and sells 52,000 balls (the same number as sold last year). Prepare a contribution format Income Statement and compute the degree of operating leverage. (Round \"Degree of operatlng leverage" to 2 declmal places.) 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? 15 6. Refer to the data in (5) above. points a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $199,000, as last year? Skipped b. Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. eBook Hint Complete this question by entering your answers in the tabs below. Print References Req 1 Req 2 Req 3 Req 4 Req 5 Req 6A Req 6B 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? (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 Hillratio 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, $199,000, 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 la), 15 what selling price per ball must it charge next year to cover the increased labor costs? points 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 Skipped 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, eBook $199,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same Hint number as sold last year). Prepare a contribution format income statement and compute the degree of operating Print leverage. References Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6A Req 6B 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, $199,000, as last year? (Round your answer to the nearest whole unit.) Number of balls Mc Graw Hill15 points Sklpped eElook Hint Print References Mc Graw Hill ..-.-. -3...\" .. ...- ..-... ... '_, ..--.." ...- r" ..-.-.n... .-...- ...-.. ...... ...... \"...... J, ..u..." ".....- a..- --.... .3 r" .-.. ... .... 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? 5. 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, $199,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same number as sold last year]. Prepare a contribution format income statement and compute the degree of operating leverage. Cunpleta lls quason hyanlerhg your mm In the tabs below. Reg 1 Reg 2 Reg 3 Reg 5 Reg 6A Reg 63 Refer again to the data In (2) above. 111e president feels that the company must wise the selling price of It: basketballs. If Northwuod Company wants to maintain the same CM ratio as last year {as computed in requirement 1a), what selling price per ball rnust It charge next year to cover the Increased labor costs? (Round your answer to 2 decimal places.) 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, 15 $199,000, as last year? points b. Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same Skipped number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. eBook Complete this question by entering your answers in the tabs below. Hint Print Req 1 Req 2 Req 3 Reg 4 Reg 5 Req 6A Req 6B References 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 A CM Ratio % Unit sales to break even balls Mc Graw Hill15 points Sklpped eBook Hint Prlnt References Mc Graw Hill ratio and the break-even point in balls? 3. Refer to the data in {2) above. lithe expected change in variable expenses takes place. how many balls will have to be sold next year to earn the same net operating income, $199,000. 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 xed 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? 5. 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, $199,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 52.000 balls (the same number as sold last year]. Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question Iw enterhg your more In the labs below. Reql Req2 Req3 Req4- Req5 If the new plant is built, how many balls will have to be sold next year to ean-I the same net operating Income, $199,000, as last year? (Round your answer no the nearest whole unit.) 1 b. Assume the new plant is built and that next year the company:r manufactures and sells 52.000 balls (the same number as sold last yea r]. Prepare a contribution format income statement and compute the degree of operating leverage. Elms Ounplelue this question by entering your me In the tabs bdow. Stripped Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 230*?" Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same number as sold _ last year). Prepare a contribution format Income statement and compute the degree of operating leverage. (Round \"Degree of H'\" opemtlng leverage" to 2 decimal places.) Prlnt References Mc. Graw Prev 1 of 2 EEE Next > 15 points Slapped eBook Hint Print References Mc Graw Hill The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis. to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $19.00 each with a minimum order of 1?2 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 1?2. Since Hooper's plan would not require any additional facilities, the onlyr costs associated with the project would be the costs of the sweatshirts and the costs of the sales commission 5. The selling price of the sweatshirts would be $33 .00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target prot of $3.944? 2. Assume that Hooper places an initial order for 172 sweatshirts. What is his break-even point in unit sales and dollar sales'? (Round your intermediate calculations and final answers to the nearest whole number.) 3. How manyr sweatshirts would Hooper need to sell to earn a target prot of $10,100? (Round your nal answer to the nearest whole number.) Unit sales needed to attain the target prot Dollar sales needed to attain the target prot 2. Breakeven point in unit sales n---|. mm. .._:..| :. .I..rr..-....|....