Need help figuring out req 4-6b, I already have the first half done ! thanks again !

Problem 6-20 (Algo) CVP Applications: Break-Even Analysis; Cost Structure; Target Sales (L06-1, L06-3, LO6-4, LO6-5, LO6-6, LO6-8) Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relles 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 32,000 of these balls, with the following results: Sales (32,888 balls) $ 800,000 Variable expenses 489, eee Contribution margin 320,000 Fixed expenses 211,680 Net operating income $ 109, eee 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? 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. 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, $109,000, 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 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, $109,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 32,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage mata hitinn hentaria in okna Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req3 Req4 Req5 Reg 6 Reg 6B 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. (Round "Unit sales to break even to the nearest Whole unit and other answers to 2 decimal places.) CM ratio 40.00% Unit sales to break even 21,100 balls Degree of operating leverage 2.94 Complete this question by entering your answers in the tabs below. Req1 ho Reg 2 Reg 3 Reg 4 Reg 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 28.00% Unit salos to break ovon 30,143) balls 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, $109,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 32.000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage 40 Complete this question by entering your answers in the tabs below. Regi Req2 Req3 Reg 4 Reqs Reg 6A Reg 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, $109,000, as last year? (Round your answer to the nearest whole unit.) Number of balls 45.714 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 heRea GA Reg 5 Reg 68 If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $109,000, as last year? (Round your answer to the nearest whole unit.) Number of balls Reg GA Reg 1 Reg 2 Reg 4 Reg 5 Reg 68 Reg 3 Assume the new plant is built and that next year the company manufactures and sells 32,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. (Round "Degree of operating leverage" to 2 decimal places.) Northwood Company Contribution Income Statement 0 $ 0 Degree of operating leverago