a) calculate the breakeven point in units and sales dollars with no change in sales. In units In dollars breakeven point: ____________ $_____________

b) calculate the breakeven points in units and sales dollars with the proposed change in sales prixe. In units In dollars breakeven point: ____________ $___________

Carla Vista Manufacturing Ltd. has provided you with the following CVP income statement: Sales ( 5.000 units) $ 1.000.000 $ 200 per unit Variable costs 670.000 134 per unit Contribution margin 330.000 $ 66 per unit Fixed costs 265.980 Operating income $ 64,020 Management is considering the following course of action to increase operating income: reduce the selling price by 20%. with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%