Parker Company manufactures and sells a single product. The following data is available for current period operations: Sales price per unit $ 125.00 Fixed costs $ 500,000 Variable cost of goods sold per unit $ 50.00 Variable selling & administrative costs per unit $ 25.00 Number of unit sold 20,000

REQUIRED:

Prepare a contribution margin format income statement for the current period. Per Unit Total What is Parker Companys profit formula?

How many units must Parker Company sell in order to break-even?

How many units must be sold for Parker Company to reach a target profit of $20,000?

How much will Parker Companys profit increase if 500 more units are sold?

What is Parker Companys contribution margin ratio?

Calculate Parker Companys break-even point in sales dollars using the contribution margin ratio.

How much will profit increase if sales increase by $50,000?

What is Parker Companys Margin of Safety?

What is Parker Companys Degree of Operating Leverage?

How much will profit increase if sales volume increases by 10%? (use DOL)