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There are no beginning or ending inventories. Required: a . Compute the company's monthly break - even point in units of product. b . What

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There are no beginning or ending inventories.
Required:
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. Refer to the original data. What dollar sales must the company achieve in order to earn a net
operating income of $50,000 per month?
d. Refer to the original data. The company has decided to automate a portion of its operations. The
change will reduce direct labor costs 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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