Need Help with Req 1,2,3,5,6A and 6B

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 42,000 of these balls, with the following results: Sales (42,000 balls). Variable expenses Centribution margin Fixed expenses Net operating income $1,050,000 630,000 420,000 266,000 $ 154,000 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 bail 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. $154,000, 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 rompany's new CM ratin and new break even noint in halls? 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, $154,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Answer is complete but not entirely correct. Reg 3 CM ratio Unit sales to break even Degree of operating leverage Reg 4 40.00% Reg S 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.) 42,000 balls 2.734 Reg 6A Reg 6B a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $154,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year) Prepare a contribution format income statement and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Req 1 Req 2 Answer is complete but not entirely correct. Rea 3 CM ratio Unit sales to break even Req 4 28.00 % 60.000 balls Reg 5 Reg 6A 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.) Req 68 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, $154,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 42.000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Answer is complete but not entirely correct. 82,000 Req 4 Reg 5 Req 6A Req 3 4 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, $154,000, as last year? (Round your answer to the nearest whole unit.) Number of balls Req 68 Uneler ve atau 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, $154,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Answer is complete but not entirely correct. CM ratio Unit sales to break even Req 4 64.00 % 53.250 balls Req 3 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.) Req 5 Req 6A Reg 68 Show less your b. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Answer is complete but not entirely correct. Req 3 62.875 Req 4 Req 5 Req 6A Req 68 If the new plant is built, how many balls will have to be sold next year to earn the same net operating income. $154,000, as last year? (Round your answer to the nearest whole unit.) Number of balls Req 1 Sales Variable expenses Contribution margin Req 2 Fixed expenses Net operating income Degree of operating leverage Reg 3 Assume the new plant is built and that next year the company manufactures and sells 42,000 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 1.050.000 378,000 672,000 266.000 $ 406,000 Req 4 7.10 Req 5 Reg 6A Reg 68 4