Parrott Company operates with a single product. The following simple income statement relates to last...
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Parrott Company operates with a single product. The following simple income statement relates to last year when sales units totaled 16,000 Total $ Per units Sales 240,000 15.00 Variable expense 168,000 10.50 Contribution margin 72,000 4.50 Fixed expenses 54.000 Net operating income 18.000 a. What is Parrott Company's breakeven point in units and $? (6 pts) b What was Parrott Company's margin of safety for last year in percentage, units, and dollars (6 pts) c. If Parrott increased quality by using materials that would raise its variable expense per unit by $075 complete a new income statement for Parrott if they sold 15% more units this year. (8 pts)
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