Parkins 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 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. What dollar sales must the company achieve in order to earn a net operating income of $50,000 per month?
d. 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.
Definitions:
Actin Myofilaments
Thin filaments primarily composed of the protein actin, playing a crucial role in muscle contraction and cell movement.
Sarcoplasmic Reticulum
A specialized type of smooth endoplasmic reticulum found in muscle cells, responsible for storing and releasing calcium ions, which are crucial for muscle contraction.
Endomysium
A thin layer of connective tissue that envelops individual muscle fibers.
Connective Tissue
A type of tissue found in the body that supports, binds together, and protects organs, consisting of cells embedded in an extracellular matrix.
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