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 dired labor workers Thus vanabile cirperses are taga otsing $15.00 per tal of which 60% is direct labor cost Last year, the company sold 48,000 of these balls, with the following results Sales (48,000 balls) Variable expenses Contribution margin Fixed expenses Net operating income $ 1,200,000 720 000 4BD DDO 319,000 S 161 000 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 lovel 2 Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $300 per ball if this change takes place and the selling price per bal remains constant at 525.00 what will be next years to and the break even point in balls? 3. Refer to the data in (2) above. If the expected change in vanable expenses takes place how many balls will have to be sold next year to earn the same not operating income $161 000 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 mantain the same CM ratio as last year las computed in recretardating pnce 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 caise fred Expenses per year to be 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 $161.000, as last year? b Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year) Prepare a contribution format income statement and compute the degree of penting Complete this question by entering your answers in the tabs below. Reg 1 Reg Reg Reg 4 Reg 5 Reg 6 Req 60 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.) CM Ratio % Unit sales to break even Degree of operating leverage balls Reg 2 > . 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 bal of which 60% is direct labor cost Last your, the company sold 48,000 of these balls, with the following results Sales (48,000 balls) $ 1.200 000 Variable expenses 720.000 Contribution margin 480,000 Fixed expenses 319 000 Net operating income $ 161 000 3 + Required: 1 Compute (a) last year's CM radio and the break-even point in balls and (b) the degree of operating leverage at last year's salas level 2. Due to an increase in labor ratos, the company estimates that next year's variable expenses will increase by $300 per ball if this chango takes place and the selling price per ball remanis 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 It the expected change in vanablo expenses takes place, how many balls will have to be sold next your lo eam the same net operating income, 5161,000 as last year? 4 Rolor again to the data in (2) above the president feels that the company must raise the selling price of its basketbolts. It Northwood Company wants to maintain the sono CM ratio as last year (as computed in roqurement 18), what selling price pot 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 40DO%, but it would cause fixed expenses per year lo double of the now plant is built what would be the company's now CM ratio and now break even point in balls? 6. Rofor to the data in (5) above If the new plant is built, how many bolls will have to be sold next year to earn the same net operating income, S161,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 48,000 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 Regs Reg 1 Reg 2 Reg 4 Reg a Reg 68 Due to an increase in labor rates, the company estimates that next year's vanable expenses will increase by $3.00 per ball. Ir 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) CMR Unit sales to break even balls Award 5.00 points 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 515 00 per ball of which 60% is direct labor cost Last year, the company sold 48,000 of these balls, with the following results: Sales (48,000 balls) Variable expenses Contribution margin Fixed expenses Net operating income $ 1.200.000 720 000 480.000 319.000 $ 161,000 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 lates, the company estimates that next year's variable expenses will increase by $300 per ball if this change takes place and the selling price per ball remains constant at $2500 What will be ned your sto and the break even point in balls 3. Refer to the data in (2) above if the expected change in vanable expenses lakes place, how many balls will have to be sold next year to earn the same net operating income S161,000 as last year 4 Rafer 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 ust year las computed in requiremental reseling 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 bali by 40.00% but it would cause food opesespero dute tre 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 not operating income, S161 000 as last year? b Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year) Prepare a contbution format income statement and compute the degree of penting age Complete this question by entering your answers in the tabs below. Reg 1 Req2 Ren 4 Reah Reg 5 Reg 6 Reg 68 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, $161,000, as last year? (Round your answer to the nearest whole unit) Number of balls M 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 vanable expenses are high ting 5500 persal of which 60% is direct labor cost Last year, the company sold 48,000 of these balls, with the following results Sales (48,000 balls) $1,200,000 Vanable expenses 720.000 Contribution margin 480.000 Faxed expenses 319.000 Net operating income 5 151,000 Required: 1 Compute (a) last year's CM radio 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 $300 per ball this change takes place and the selling price per ball remains constant at 525 00 what will be resto and the break-even point in balls? 3 Refer to the data in (2) above the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating incomo, S161,000, 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 rato a list year as compted in regaron a wing price per ball must it charge next year to cover the increased labor costs? 5 Refer to the onginal data The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 4000%, but would cause fred expenses per year to double new plant is buit, what would be the company's new CM ratio and new break even point in balls? 5 Refer to the data in (5) above all the new plant is built how many balls will have to be sold next year to earn the sampe net operating income, S161,000 as last year? Assume the new plant is built and that next year the company manufactures and sells 48,000 balls the same number as sold last year) Prepare a contrbution format income statement and compute the degree of penting lever Complete this question by entering your answers in the tabs below. Reg R2 Req3 Rool Reg 5 REGA Reg 6 Reler 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 la), what selling price per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.) Seing price Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that roles heavily on direct labor workers. Thus vanable expenses are high letaling S1500 per te of which 60% is direct labor cost Last year, the company sold 48,000 of these balls with the following results Sales (48,000 balls) Variable expenses Contribution margin Fixed expenses Net operating income $ 1,200,000 720 000 480.000 319.000 $ 161,000 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 vanable expenses will increase by $3.00 per ball of this change takes place and the selling price per ball remains constant at $2500, what will be need years CM to 2 , $ 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 eam the same net operating income, S161,000 as last year? price per ball must it charge next year to cover the increased labor any must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM rabo as last year as computed in requiremental who seling 5 Refer to the orginal 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 foxed expenses per year to doutie 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, $161,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year) Prepare a contribution format income staternent and compute the degree of operating leverage Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 ? Reg 3 Reg 4 Hegs Req 6A Reg 68 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.) Show less CM Ratio Unit sales to break even 26 bals Type here to search 61F Sunny 626 PM 10/17/2021 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 vanable expenses are high totaling 515 00 per bal of which 60% is direct labor cost Last year, the company sold 48,000 of these balls, with the following results Sales (48,000 balls) Vanable expenses Contribution margin Fixed expenses Net operating income $ 1,200,000 720,000 480,000 319.000 $ 161 000 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 lovel 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 chanpe takes place and the selling price per ball remains constant at 525 00 what will be next years CMO 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, S161,000 as last year? 4 Reler 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 rabo as last year las computed in teateret al satin is wrestling pnce 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 bait by 40.00% but it would cause fixed erperses per year to be 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 all the new plant is built, how many balls will have to be sold next year to earn the same net operating incomo, S161,000, as last year? b Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year) Prepare a contribution format income statement and compute the degree of operating kvenge Complete this question by entering your answers in the tabs below. . Reg 1 Reg 2 Req Reg 4 Reg 5 Req A Reg 68 If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $161,000, as last year? (Round your answer to the nearest whole unit.) ? Number of balls Northwood Company manufactures basketballs The company has a ball that sells for $25. Al present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, vanable expenses are high totaling S1500 per bal of which 60% is direct labor cost Last year, the company sold 48,000 of these balls, with the following results Sales (48,000 balls) Variable expenses Contribution margin Fixed expenses Net operating income $ 1200,000 720.000 400,000 319.000 $ 161,000 Required 1 Computo (a) last year's CM ratio and the break even point in balls, and (b) the degree of operating sverige at last year's sales level 2 Due to an increase in labor rates, the company estimates that next year's variable exponses will increase by $3.00 per ball this change takes place and the soling once per ball remains constant at $25.00 what will be next year's CM ratio and the break oven point in ba? 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many bols will have to be sold next year to earn the same net operating income, $161,000, 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. Il Northwood Company wants to maintain the same CM ratio as last year (as compuled in requirement 10), what selling price per ball mustil chargo 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 varable 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 now bronk-even point in balls? 6. Refer to the data in (5) above a If the new plant is built, how many bats will have to be sold next year to earn the same net operating income, S161,000, as last year? b Assume the new plant is built and that next year the company manufactures and sells 48,000 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. Regs Rrg GA Req1 Reg 4 Rev GB Reg 2 Req Assume the new plant is built and that next year the company manufactures and sells 48,000 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 Degree of operating leverage 6:27 PM car un