Question
Crane Company reports the following operating results for the month of April. CRANE COMPANY CVP Income Statement For the Month Ended April 30, 2022
Crane Company reports the following operating results for the month of April. CRANE COMPANY CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit Sales (11,340 units) $589,680 $52.00 Variable costs 317,520 28.00 Contribution margin 272,160 $24.00 Fixed costs 189,000 Operating income $83,160 Management is considering the following course of action to increase operating income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 30%. Using the contribution margin technique, calculate the break-even point in units and dollars and margin of safety in dollars. (a) Your answer is incorrect. Assume no changes to selling price or costs. (Round contribution margin ratio and final answers to O decimal places, eg. 125.) Break-even point 1005 units Break-even point $ 472500 Margin of safety $ 217426 Crane Company reports the following operating results for the month of April. CRANE COMPANY CVP Income Statement For the Month Ended April 30, 2022 Total Per Unit Sales (11,340 units) $589,680 $52.00 Variable costs 317,520 28.00 Contribution margin 272,160 $24.00 Fixed costs 189,000 Operating income $83,160 Management is considering the following course of action to increase operating income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 30%. Using the contribution margin technique, calculate the break-even point in units and dollars and margin of safety in dollars. (a) Your answer is incorrect. Assume no changes to selling price or costs. (Round contribution margin ratio and final answers to O decimal places, eg. 125.) Break-even point 1005 units Break-even point $ 472500 Margin of safety $ 217426
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