Able Company manufactures and sells boxes of envelopes. The company sold 50,000 boxes of envelopes at a contribution margin of $80,000 or $1.60 per unit. The total fixed costs were $50,000. The current breakeven point was 31,250 units. 

Management has proposed increasing the contribution margin per unit by 10% and reducing fixed costs by 20%.

a. Which actions is the company likely to take to reduce fixed costs without impacting variable costs or the number of units sold?

b. What are the proposed contribution margin per unit and the proposed fixed costs?

c. What will be the new breakeven point in units?

d. Should management take the suggested action?

e. Which questions would you pose of management beyond the information provided?