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Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (38,000 units at $41

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

Sales (38,000 units at $41 per unit) $ 1,558,000
Less manufacturing costs:
Direct materials $ 304,000
Direct labor (variable) 380,000
Variable factory overhead 76,000
Fixed factory overhead 190,000 950,000
Gross margin 608,000
Less selling and other expenses:
Variable selling and other expenses 152,000
Fixed selling and other expenses 266,000 418,000
Net operating income $ 190,000

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 27% 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 $210,000 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 37 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

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