Northwood Company manufactures basketballs. The company has a ball that sells for $46. At present, the ball is manufactured in a small plant that...

Northwood Company manufactures basketballs. The company has a ball that sells for $46. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $23.23 per skateboard, of which 50.50% is direct labor cost.Last year, the company sold 40,700 of these balls, with the following results: