please need help

Nocthwood Company manufactures basketballs. The company has a ball that selis for $25. At present, the ball is manufactured in a smali plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per bail, of which 60% is direct labor cost Last yeac, the company sold 31,000 of these balls, with the following results: Required: 1. Compute (a) fast 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 seling price per ball remains 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 requirement 2. If the expected change in vanable expenses takes place, how many balls will have to be sold nect year to eam the same net operating income, $94.400, as last year? 4. Refer again to the data in tequirement 2 . 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 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 variable expenses per ball by 40.00%, but it would cause fored 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? 6. Refer to the data in requirement 5 . a. If the new plant is bult, how many balls will have to be sold next yeor to eam the same net operating income, $94,400, as last: year? b. Assume the new piant is built and that next year the company manufactures and sells 31,000 balls (the same number as sold last yeag) Prepase a contribution format income statement and compute the degree of operating leverage