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  3. 2.(12 points) perkins company produces and sells a

2.(12 points) Perkins Company produces and sells a single product. The company's income statement for...

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Accounting

2.(12 points) Perkins Company produces and sells a single product. The company's income statement for the most recent month is given below:
Sales (15,000 units at $29 per unit)
$435,000
Less variable costs:
Direct materials (variable)
Direct labor (variable) $60,000
Variable factory overhead
75,000
Variable selling and other expenses..
Contribution margin
Less fixed expenses:
Fixed factory overhead
100,000
Fixed selling and other expenses
85,000
Net operating income
45,000
30,000,210,000225,000
185,000$40.000
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 32% and total fixed factory overhead dropped by $41,000?
c. What total level of sales (in units) must the company achieve in order. to earn a target profit of $72,000?
d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 60%, but it will double the costs for fixed factory overhead. Every other cost remains unchanged. Compute the new break-even point in units.
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