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Do It! Review 6-1 a, bi Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the
Do It! Review 6-1 a, bi Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit $50 Sales (10,000 units) Variable costs Contribution margin Fixed expenses $500,000 250,000 250,000 189,900 $60,100 25.00 $25.00 Net Income Management is considering the following course of action to increase net income: Reduce the selling price by 5%, 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 o decimal places, e.g. 2,510.) (a) Assuming no changes to selling price or costs. Break-even point units Break-even points Margin of safety s (b1) Assuming changes to sales price and volume as described above. Break-even point units Break-even points Margin of safety
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