Carla Vista Manufacturing Ltd$.$ has provided you with the following CVP income statement:

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 $30\%.$

Calculate the break$-$even point in units and sales dollars with no change in sales. $($Round contribution margin ratio to $5$ decimal

places, e$.$g$.15\mathrm{.}22456\%.$ Round units to $0$ decimal places, e$.$g$.5,275$ and dollar amount to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$ Calculate the break$-$even point in units and sales dollars with the proposed change in sales price. $($Round units to $0$ decimal places, e$.$g$.5,275$ and dollar amount to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

In units

In dollars

Break$-$even point

$

Should management go forward with the reduction in sales price?