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Refor to the data in requirement 5. If the new plant is bull, how many balls will have to be sold next vear to earn the same net operating income, $103,200, as last year (Round your anower up to the nearest whole unit) Complete this question by entering your answers in the tabs below. Compute (a) last year's CM ratio and the break-even point in balis, and ( b ) the degree of operating leverage at last sales level. (Round "Unit sales to break even" up to the nearest whole unit and other answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. 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 fixed expenses per year to double. If the new plant is bult, what would be the company's new CM ratio and new break-even point in balls? (Round "CM ratio" to 2 decimal places and round "Unit sales to break even" up to the nearest whole unit.) b. Assume the new plant is bulit and that next year the company manutactures and year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. 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 selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balis? (Round scM rotion" to 2 decimal places and round "Unit sales to break eyen" up to the nearest whole unit, Complete this question by entering your answers in the tabs below. Refer to the data in requirement 5. Assume the new piant is buit and that next year the company manufactures and sells 33,000 bails (the some number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. (Round "Depree of operating leverage"t to 2 decimal places) Complete this question by entering your answers in the tabs below. Pefer to the dato in requirement 2. If the expected change in variable expenses takes place, how many balts wil have to be sold next year to earn the same net operating income, $103,200, as last year? (Round your answer up to the nearesit whole unit) 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 difect labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost Last year, the company sold 33,000 of these balls, with the following results: Required: 1. Compute (a) last year's CM rotio and the break-even point in bolls, and (b) the degree of operating leverage at lest year's sales level. 2. Dire to an increase in labor cates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant of $25.00, what will be next year's CM ratio and the break-even point in balis? 3. Refer to the dota in requirement 2 . 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, $103,200, as last year? 4. Refer again to the data in requirement 2. The president feels that the company must raise the neling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as tast year (as computed in requitement ta), what selling price per ball must it charge nokt year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of o new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, 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 balis? 6. Refer to the dota in requirement 5. d. If the new plant is bulit, how many bails will have to be sold next yoar to earn the same net operating income, $103,200, as last year? b. Assume the new plant is buit and that next year the compary manufactures and selis 33,000 balis (the same number as sold iast year), Prepare a contribution format income statement and compute the degree of operating leverage. Refer again to the data in requirement 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 1a), what seilling price per ball must it charge next vear to cover the increased labor costs? (Round your answer to 2 decimal places:)

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