Queensland Company reports the following operating results for the month of April.

Management is considering the following course of action to increase net income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 30%.
Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars:
(a) Assuming no changes to selling price or costs.
(b) Assuming changes to sales price and volume as described above.
Comment on yourfindings.

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QUEENSLAND COMPANY CVP Income Statement For the Month Ended April 30, 201.2 Total Per Unit Sales (9,000 units $450,000 $50.00 27.50 $22.50 Variable costs Contribution margin Fixed expenses Net income 247,500 202,500 150,000 52,500