Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below:

Sales (8,000 units at $41 per unit)

$

328,000

Less manufacturing costs:

Direct materials

$

64,000

Direct labor (variable)

80,000

Variable factory overhead

16,000

Fixed factory overhead

40,000

200,000

Gross margin

128,000

Less selling and other expenses:

Variable selling and other expenses

32,000

Fixed selling and other expenses

56,000

88,000

Net operating income

$

40,000

There are no beginning or ending inventories.

Required:
a.	Compute the company's monthly break-even point in units of product. (Round your answer to the nearest whole number.)

Break-even point in units

b.	What would the company's monthly net operating income be if sales increased by 24% and there is no change in total fixed expenses?

Net operating income

$

c.	What dollar sales must the company achieve in order to earn a net operating income of $60,000 per month? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)

Sales

$

d.

The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 43 percent, but it will double the costs for fixed factory overhead. Compute the new break-even point in units. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)

New break-even point in units