Business, 09.04.2021 03:30, zivicion

Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017
Total Per Unit
Sales (8,600 units) $455,800 $53
Variable costs 223,342 25.97
Contribution margin 232,458 $27.03
Fixed expenses 205,428
Net income $27,030
Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e. g. 0.2522 and final answer to 0 decimal places, e. g. 2,510.)
(a) Assuming no changes to selling price or costs.
Break-even point units
Break-even point $
Margin of safety $
(b1) Assuming changes to sales price and volume as described above.
Break-even point units
Break-even point $
Margin of safety $

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Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY C...