Victoria 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 change will increase unit sales by 20%.
Using the contribution margin technique, compute the break-even point in sales units and sales 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 your findings.

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Sales (9,000 units) Variable costs Contribution margin Fixed expenses Net income Victoria Company CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit $450,000 $50 270,000 30 180,000 $20 150,000 $ 30,000 Percent of Sales 100% 60 40%