Vicoria 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 4%, with no changes to unit variable costs or fixed costs. Management is confident that this is change will increase unit sales by 20%.
Using the contribution margin technique, compute the break - even point in unit and dollars and margin of safety in dollars"
(a) Assuming no changes to selling price or costs, and
(b) Assuming changes to sales price and volume as described above.

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VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017 Total Sales (9,000 units) Variable costs Contribution margin Fixed expenses Net income Per Unit $50 30 $20 $450,000 270,000 180,000 150,000 30,000