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Carla Vista Manufacturing Ltd . has provided you with the following CVP income statement: Management is considering the following course of action to increase operating

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.15.22456%. Round units to 0 decimal places, e.g.5,275 and dollar amount to 2 decimal places, e.g.15.25.) 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.15.25.)
In units
In dollars
Break-even point
$
Should management go forward with the reduction in sales price?
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