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Sheridan Company reports the following operating results for the month of April. SHERIDAN COMPANY CVP Income Statement For the Month Ended April 30, 2022
Sheridan Company reports the following operating results for the month of April. SHERIDAN COMPANY CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit Percent of Sales Sales (4,140 units) $414,000 $100 100 % Variable costs 248,400 60 60 Contribution margin 165,600 $40 40 % Fixed expenses 138,000 Net income $27,600 Management is considering the following course of action to increase net income: Reduce the unit selling price by 4%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in sales units and sales 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 unit selling price or costs. Break-even point Break-even point $ Margin of safety $ +A units (b1) Assuming changes to unit selling price and volume as described above. Break-even point Break-even point $ Margin of safety $ units
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