Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO6-3, LO6- 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. (a) last years CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales level