PLEASE HELP WHICHEVER IS BLANK IS THE ONE I AM STRUGGLING. ...
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PLEASE HELP WHICHEVER IS BLANK IS THE ONE I AM STRUGGLING.
Northwood Company manufactures basketballs. The company has a ball that sells for $32. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $22.40 per ball, of which 70% is direct labor cost. Last year, the company sold 45,000 of these balls, with the following results: $1,440,000 Sales (45,000 balls) 1,008,000 Variable expenses Contribution margin 432,000 288,000 Fixed expenses 144,000 Net operating income Required: 1-a. Compute the CM ratio and the break-even point in balls. (Do not round intermediate calculations.) 30% CM Ratio 30,000 balls Unit sales to break even 1-b. Compute the the degree of operating leverage at last year's sales level. (Round your answer to 2 decimal places.) egree of operating 3.00 everage
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