need help with required # 4 and 6a and 6b

also the answer for required is not 250

Chapter Five Problems (10 pts) Saved 1 Problem 5-20 (Algo) CVP Applications: Break-Even Analysis; Cost Structure; Target Sales (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-8) 333 boints Book Print References 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 42,000 of these balls, with the following results: Sales (42,000 balls) $ 1.050,000 Variable expenses 10,000 Contribution margin 420,000 Fixed expenses 266,000 Met operating inconto #154.000 Required: 1. Compute(o) lost year's CM ratio and the break-even point in balls, and (b) the degree of operating loverage 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, $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 los computed in requirement ta). 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 bullt, 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 fast 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 Req3 Reg 4 Reg 5 Reg 6A Req6B