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Blossom Company reports the following operating results for the month of April. Management is considering the following course of action to increase net income: Reduce
Blossom 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 unit 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: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510 .) Using the contribution margin technique, compute the break-even point in sales units and sales 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, e.g. 2,510.) (a) Assuming no changes to unit selling price or costs. Break-even point Break-even point Margin of safety (b1) Assuming changes to unit selling price and volume as described above. Break-even point Break-even point Margin of safety units $ $
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