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 46,000 of these balls, with the following results: sales (46,000 balls)$1,150,000variable expenses 690,000contribution margin 460,000fixed expenses 318,000net operating income$142,000 required: 1. compute (a) last 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 selling 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 (2) above. 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, $142,000, as last year?

What is used by accountant to analyze transactions ?

Arecession is defined as a period in which

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.