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Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below:

Sales (8,000 units at $41 per unit)						$	328,000
Less manufacturing costs:
Direct materials		$	64,000
Direct labor (variable)			80,000
Variable factory overhead			16,000
Fixed factory overhead			40,000				200,000
Gross margin							128,000
Less selling and other expenses:
Variable selling and other expenses			32,000
Fixed selling and other expenses			56,000				88,000
Net operating income						$	40,000
There are no beginning or ending inventories. Required: a. Compute the company's monthly break-even point in units of product. (Round your answer to the nearest whole number.) Break-even point in units b. What would the company's monthly net operating income be if sales increased by 24% and there is no change in total fixed expenses? Net operating income $ c. What dollar sales must the company achieve in order to earn a net operating income of $60,000 per month? (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) Sales $ d. The company has decided to automate a portion of its operations. The change will reduce direct labor costs per unit by 43 percent, but it will double the costs for fixed factory overhead. Compute the new break-even point in units. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) New break-even point in units

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