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es IUUUJ- 17 pts Question 12 [Problem 1 - CVP] Parkins Company produces and sells a single product. The company's income statement for the most

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es IUUUJ- 17 pts Question 12 [Problem 1 - CVP] Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units @ $40 per unit) $240,000 Less: manufacturing costs Direct material $ 48,000 Direct labor 60,000 Variable factory overhead 12,000 Fixed factory overhead 30.000 Gross margin Less: Selling and other expenses Variable selling and other expenses 24,000 Fixed selling and other expenses 42.000 150.000 90,000 66,000 Net operating income $ 24.000 There are no beginning or ending inventories. Required: (a) Compute the company's break-even point in units. (5 points) bi What would the company's net operating income be if sales increased by Variable selling and other expenses 24,000 Fixed selling and other expenses 42.000 66,000 Net operating income $ 24,000 There are no beginning or ending inventories. Required: (a) Compute the company's break-even point in units. (5 points) (b) What would the company's net operating income be if sales increased by 25% and there is no change in total fixed expenses? (4 points) (c) What dollar sales must the company achieve in order to earn a net operating income of $50,000 per month? (3 points) (d) The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 40 percent, but it will double the costs for fixed factory overhead. Compute the new break-even point in units. (5 points) HTML Editore BIVA - A - IX EX 3 1 1 XX, E E - O N V D 1: 12pt

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