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please help answer the following questions Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured

please help answer the following questions
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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 38,000 of these balls, with the following results: Required; 1. Compute (o) tast yea'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 ptice per ball remains constant at $25.00, what will be next year's CM ratio and the breakeven 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, $116,000, 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 ratio as last year (as computed in requirement 13), what selling price per bali must it charge nextyear 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 vatiable expenses per ball by 40.00%, but it would cause fixed expenses per yeat to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balis? 6. Refer to the data in (5) above. a. If the new plant is built, how many bolls will have to be sold next year to earn the samie net operating income, $116,000, as last year? b. Assume the new piant is buit and that next year the compony manufactures and selis 38,000 balls (the same number as sold last yeat). Prepate a contribution format income statement and compute the degree of operating leverage. Complete this question by entering ye answers in the tabs below

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