Question: Problem 6 - 2 0 ( Static ) CVP Applications: Break - Even Analysis; Cost Structure; Target Sales [ LO 6 - 1 , LO

Problem 6-20(Static) CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO63, LO6-4, LO6-5, LO6-6, LO6-8]
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 per ball, of which 60% is direct labor cost.
Last year, the company sold 30,000 of these balls, with the following results:
\table[[Sales balls
 Problem 6-20(Static) CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1,

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