Parker Products, Inc. is a manufacturer whose absorption costing income statement reported sales of $123 million and a net operating loss of $18 million. According to a CVP analysis prepared for management, the companys break-even point is $115 million in sales.

Required:

Assuming that the CVP analysis is correct, is it likely that the companys inventory level increased, decreased, or remained unchanged during the year?

• Increased, Decreased or Remained unchanged?