Question: Help System Announcements CALCULATOR PRINTER VERSION BACK NE Do It! Review 6-1 a, b1 Victoria Company reports the following operating results for the month of
Help System Announcements CALCULATOR PRINTER VERSION BACK NE Do It! Review 6-1 a, b1 Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (8,000 units) $400,000 Variable costs 200,000 Contribution margin 200,000 Fixed expenses 177,525 Net income $22,475 Per Unit $50 25.00 $25.00 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 decim places e.g. 0.2522 and final answer to o 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 $ Click if you would like to Show Work for this question: Open Show Work
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