Northwood Company manufactures basketballs. The company makes a ball that sells for $25. At present, the ball is manufactured in a small plant that...

Northwood Company manufactures basketballs. The company makes a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labour workers. Thus, variable costs are high, totaling $15 per unit. In the year 2007, the company sold 30,000 of these balls, with the following results:Sales (30,000 units)