Northwood Company manufactures basketballs. The company has a ball that sells for $39. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $29.00 per ball, of which 74% is direct labor cost. Last year, the company sold 30,000 of these balls, with the following results: points 1,170,000 Sales (30,000 balla) Variable expenses Contribution margin Pixed expenses Net operating incone eBook 870,00 300,000 210,000 $ 90,000 Print 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 variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $39.00, what will be next years CM ratio and the break-even point in balls? 3. Refer to the data in (2) above. If the expected changae in variable expenses takes place, how manv balls will have