Question: Parker Products Inc, a manufacturer, reported $ 123 million in sales and a loss of $ 18 million in its annual report to shareholders. According

Parker Products Inc, a manufacturer, reported $ 123 million in sales and a loss of $ 18 million in its annual report to shareholders. According to a CVP analysis prepared for management, the company’s break- even point is $ 115 million in sales.

Required:
Assuming that the CVP analysis is correct, is it likely that the company’s inventory level increased, decreased, or remained unchanged during the year? Explain.

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