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Northwood Company manufactures basketballs. The company has a ball that sells for $25....

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Accounting

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 $15.00 per ball, of which 60% is direct labor cost.
Last year, the company sold 31,500 of these balls, with the following results:
\table[[Sales balls),$787,500
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