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 50,000 of these balls, with the following results: ok Sales (50,000 balls) t ences Variable expenses Contribution margin Fixed expenses Net operating income $1,250,000 750,000 500,000 320,000 $ 180,000