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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 $30 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 $24 per ball, of which 80% is direct labor cost. 
 

In 2021, the company sold 20,000 of these soccer balls, with the following results:

Sales(20,000 balls)

$600,000

Variable expenses

$480,000

Contribution margin

$120,000

Fixed expenses

$85,000

Net operating income

$35,000
CVP#1- Goalie\'s Ball; Part A
Use the information provided above for Goalie\'s Ball. Compute 2021\'s break-even point in soccer balls for Goalie\'s Ball ?
CVP#1- 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 25% per ball, but it would cause
total fixed expenses per year to increase by $71,000. If the new plant is built and these changes occur, calculate Goalies Ball new break-even point in soccer balls? 

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