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Goalie s Ball, Inc. manufactures soccer balls. The company has a soccer ball that sells for $ 3 0 per ball. At present, the ball
Goalies Ball, Inc. manufactures soccer balls. The company has a soccer ball that sells for $ per ball. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $ per ball, of which is direct labor cost.
In the company sold of these soccer balls, with the following results:
Sales balls
$
Variable expenses
$
Contribution margin
$
Fixed expenses
$
Net operating income
$
CVP# Goalie\'s Ball; Part A
Use the information provided above for Goalie\'s Ball. Compute s breakeven point in soccer balls for Goalie\'s Ball
CVP# Goalie\'s Ball; Part B
Use the information provided above for Goalie\'s Ball. The company is discussing the construction of a new, automated manufacturing plant. The new plant would reduce variable expenses by per ball, but it would cause
total fixed expenses per year to increase by $ If the new plant is built and these changes occur, calculate Goalies Ball new breakeven point in soccer balls?
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