NAME (N): Saltanat SURNAME (S): Dosaleva tin- 19 MANAGERIAL ACCOUNTING FINAL EXAM NBA Sport Company manufactures basketballs. The company has a ball that 14.3. Refer to the data in question 14.2. If the expected change in variable sells for $3 dollars. At present, the ball is manufactured in a small plant that expenses takes place relies heavily on direct labor workers. Thus, variable expenses are high, as in question 14.2, how many balls will have to be sold next year to earn the totaling N1 per ball, of which 60% is direct labor cost. Last year, the company sold N6,000 of these balls, with the following results: Fixed expenses 200 same net operating 000 income as last year? 14.1. Compute (a) last year's CM ratio, (b) the break-even point in balls, and (c) the degree of operating leverage at last year's sales level. 14.4. Refer again to the data in question 14.2. The president feels that the 14.2. Due to an increase in labor rates, the company estimates that next company must raise year's variable expenses the selling price of its basketballs. If NBA Company wants to maintain the will increase by $6.00 per ball. If this change takes place and the selling price same CM ratio per ball remains as last year (as computed in question 14.1 (a)), what selling price per ball constant what will be (a) next year's CM ratio and (b) the break-even point in must it charge next balls? year to cover the increased labor costs