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Northwood Company manufactures basketball selling for $25 per ball in company sold 30,000 hall. 30. pall of which 60% is direct labor cont. Lay yegr,
Northwood Company manufactures basketball selling for $25 per ball in company sold 30,000 hall. 30. pall of which 60% is direct labor cont. Lay yegr, thy 2th,40.000 5,40,000 3,00,000 2.30 .000 90.000 of operating last year's contribution margin (CM) ratio and break-even point (BEP) in units and (b) the degree 2) a) selling price =$25 variable cost per unit =15 contribution margin per unit =10 2. Due to an increase in labor rate, the company estimates next year's variable expenses will increase by $3 per ball. If this change takes place and the selling price per ball remains constant at $25, what will be the CM ratio and BEP in units next year? Cmratio=sellingpricex200cmperunit=251007 selling price =$25 ( ) varciable costper unit =18 =28% Next contribution margin perunit =7 page 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 of $90,000 as last year? To gain the same net operating income last year, Northwood company have ell, 46,667 balls
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