Referto the original data. The company is discussing the co

Referto the original data. The company is discussing the construction of anew, automated manufacturing plant. The new plant would slash variableexpenses per ball by 30%, but it would cause fixed expenses per year toincrease by 99%. If the new plant is built, what would be the company’snew CM ratio and new break-even point in balls?Original Data:NorthwoodCompany manufactures basketballs. The company has a ball that sells for$35. At present, the ball is manufactured in a small plant that reliesheavily on direct labor workers. Thus, variable expenses are high,totaling $24.50 per ball, of which 70% is direct labor cost.  Last year, the company sold 57,000 of these balls, with the following results:  Sales (57,000 balls) $ 1,995,000    Variable expenses 1,396,500    Contribution margin 598,500    Fixed expenses 493,500    Net operating income $ 105,000