Use the following data to answer the next two questions. Parker Company\'s opera

Question

Use the following data to answer the next two questions.
Parker Company's  operating results for last year are given below:
Sales  2,400 units
Selling price $40 per unit
Variable expense $14 per unit
Fixed expenses $19,500

1.  If the company wants to increase its total contribution margin by 40% over last year, it will need to increase its sales by:
a. $17160
b. $24,960
c. $38,400
d. $26,400
2. If the company's fixed expenses decrease by 20% next year, the break-even point will change from its previous level by:
a. 150 unit increase
b. 360 unit decrease
c. 150 unit decrease
d. no change in the break-even point

Explanation / Answer

$38,400.

150 unit decrease

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