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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 25.00 Sales (9,000 units) Variable costs Contribution margin Fixed expenses Net income $450,000 225,000 225,000 200,025 $24,975 $25.00 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 point $ Margin of safety $ (b1) Assuming changes to sales price and volume as described above. Break-even point units Break-even point $ Margin of safety $
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