Required:

a. Compute the company's break-even point in units and sales dollars.

b. What would the company's monthly net operating income be if sales and total variable costs increased by 25% and total fixed factory overhead dropped by $30,000?

c. What total level of sales (in units) must the company achieve in order to earn a target profit of $95,000?

d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 75%, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units.

2. (12 points) Perkins Company produces and sells a single product. The company's income statement for the most recent month is given below: There are no beginning or ending inventories. Required: a. Compute the company's break-even point in units and sales dollars. b. What would the company's monthly net operating income be if sales and total variable costs increased by 25% and total fixed factory overhead dropped by $30,000 ? c. What total level of sales (in units) must the company achieve in order to earn a target profit of $95,000 ? d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 75%, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units