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(10 points) Perkins Company produces and sells a single product. The company's income statement for the most recent month is given below 2. Sales (15,000

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(10 points) Perkins Company produces and sells a single product. The company's income statement for the most recent month is given below 2. Sales (15,000 units at $29 per unit) Less variable costs: $435,000 Direct materals (variable) Direct labor (variable) Variable factory overhead Variable selling and other expenses 30,000 210,000 $60,000 75,000 Contribution margin 225,000 ixed margines 1%000 Less fixed expenses: Fixed factory overhead Fixed selling and other expenses 100,000 000 185000 $40.000 Net operating income There are no beginning or ending inventories Required: a. Compute the company's break-even point in units and sales dollars. b. What would the company's monthly net operating income be if sales and total variable costs increased by 30% and total fixed factory overhead dropped by $25,000? c.What total level of sales (in units) must the company achieve in order to earn a target profit of $145,0002 d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 50 percent, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units

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