1. value: points 5.00 Problem 5-20 Various CVP Questions: Break-Even Point; Cost Structure; Target Sales LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-8] Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $21.00 per ball, of which 60% is direct labor cost. Last year, the company sold 41,000 of these balls, with the following results: $1,435,000 Sales (41,000 balls) 861,000 Variable expenses Contribution margin 574,000 Fixed expenses 420,000 154,000 Net operating income