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Please help with second part a and b. Wilson Sporting Goods manufactures basketballs. The company has a ball that sells for $25. At present, the

image text in transcribedimage text in transcribedPlease help with second part a and b.

Wilson Sporting Goods 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 per ball, of which 60% is direct labor cost. Last year, the company sold 30,000 of these balls, with the following results: 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%, 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? CM ratio: Unit sales to breakeven: Wilson Sporting Goods 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 per ball, of which 60% is direct labor cost. Last year, the company sold 30,000 of these balls, with the following results: a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year? Number of balls: b. Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last year). Compute the degree of operating leverage. Degree of operating leverage

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