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Parkins Company produces and sells a single product. The company's most recent income statement is given below: Note: When it says ''Variable Factory Overhead'' it

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Parkins Company produces and sells a single product. The company's most recent income statement is given below: Note: When it says ''Variable Factory Overhead'' it is a variable cost though it is termed as Factory Overhead. The same is true with Selling and other expenses. THERE ARE NO BEGINNING AND ENDING INVENTORIES. REQUIRED: Answer any three of the four questions below: a. Compute the company's monthly break-even point in units of product. b. What would the company's monthly net operating income be if sales increased by 25% and there is no change in total fixed expenses? c. What dollar sales must the company achieve in order to earn a net operating income of $50,000 per month? d. The company has decided to automate a portion of its operations. The change will reduce direct labor cost per unit by 40 percent, but it will double the costs for fixed factory overhead. Compute the new break-even point in units

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