Parrott Company operates with a single product. The following simple income statement relates to last year when sales units totaled 22,000.

Total $ Per unit $

Sales 330,000 15.00

Variable expense 198,000 9.00

Contribution margin 132,000 6.00

Fixed expenses 54,000

Net operating income 78,000

a. What is Parrott Company's breakeven point in units and $ ?

b. What was Parrott Company's margin of safety for last year in percentage, units, and dollars?

c. If Parrott increased quality by using materials that would raise its variable expense per unit by $0.80, complete a new income statement for Parrott if they sold 12% more units this year.