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CVP Income Statement For the Month Ended April 30, 2017 Total Per Unit Sales (8,100 units) Variable costs Contribution margin Fixed expenses Net income $372,600

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CVP Income Statement For the Month Ended April 30, 2017 Total Per Unit Sales (8,100 units) Variable costs Contribution margin Fixed expenses Net income $372,600 182,574 190,026 182,988 $7,038 $46 22.54 $23.46 Management is considering the following course of action to increase net income: Reduce the 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 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, e.g. 2,510.) (a) Assuming no changes to selling price or costs Break-even point Break-even point Margin of safety (b1) Assuming changes to sales price and volume as described above Break-even point Break-even point Margin of safety 7,800 units 358 13,80 units s

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