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please help me to solve problem and check the answer carefully because this is my homework 2. 10.00 points Northwood Company manufactures basketballs. The company

please help me to solve problem and check the answer carefully because this is my homework

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2. 10.00 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 labour workers. Thus, variable expenses are high, totaling $15 per ball, of which 60% is direct labour cost Last year, the company sold 30,000 of these balls, with the following results Sales (30,000 balls) $ 750,000 Variable expenses 450,000 Contribution margin 300,000 Fixed expenses 210,000 Net operating income $ 80,000 Required 1-a. Compute last year's CM ratio and the break-even point in balls. CM Ratio Unit sales to break even balls1-b. Compute the the degree of operating leverage at last year's sales level. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Que to an increase in labour rates, the company estimates that next year's variable expenses will increase by $3 per ball, If this change takes place and the selling price per ball remains constant at $25, what will be next year's CM ratio and the break-even point in balls? CM Ratio Unit sales to break even 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, $80,000, as last year? (Round your answer to the nearest whole unit.) Number of balls

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