QUESTION 1 Super Sonics Manufacturing produces and sells basketballs. Each ball sells for RM25. The current production activities of SuperSonics rely heavily on direct labours. Thus, variable costs are high, totaling RM 15 per ball, of which 60% is direct labour cost. Last year, SuperSonics sold 30,000 balls and incurred RM210,000 of annual fixed costs. Despite making profit last year, the Chief Executive Officer (CEO) has expressed his concern over the labour-dependency operations of the company. Moreover, in the current year, the company expects the cost of direct labour will increase by RM3 per ball and thus raising the unit variable cost of the ball Required: 1. Based on last year's operations, calculate (a) total operating income and (b) contribution margin ratio of the company. (4 marks) a. 2. For the current year's operations: what would be the break-even points in units and sales (RM) for the company? (4 marks) b. how many units of basketballs need to be sold if the company were to maintain last year's operating income? (3 marks) c. calculate the new unit selling price for the basketball if the CEO desires to maintain the same contribution margin ratio as last year