B1

(b1) Assuming changes to sales price and volume as described above. Break-even point units Break-even point Margin of safety $ Management is considering the following course of action to increase net income: Reduce the selling price by 7%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%, Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, eg. 2,510.) (a) Assuming no changes to selling price or costs