Northwood Company manufactures basketballs. The company has a ball that sells for $34. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $20.40 per ball, of which 60% is direct labor cost. Last year, the company s old 53,000 of these balls, with the following results Sales (53,000 balls) Variable expenses $1,802,000 1,081,200 Contribution margin Fixed expenses 720,800 584,800 Net operating income $ 136,000 Required 1-a. Compute the CM ratio and the break-even point in balls. (Do not round intermediate calculations.) CM Ratio Unit sales to break even balls 1-b. Compute the the degree of operating leverage at last year's sales level. (Round your answer to 2 decimal places.) gree of operating era