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Business, 26.09.2019 21:00 gatorboy1788

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 30,000 of these balls, with the following results: sales (30,000 balls) $ 750,000 variable expenses 450,000 contribution margin 300,000 fixed expenses 210,000 net operating income $ 90,000 compute the cm ratio and the break-even point in balls.

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