Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HW.Q.#1 Please show the calculations. Thankyou Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the

HW.Q.#1

Please show the calculations.

Thankyou

image text in transcribed

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 Sales (9,000 units) $450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $25.00 Fixed expenses 175,050 Net income $49,950 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 sale 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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Your Small Business

Authors: Eric James Burton, Steven M Bragg

1st Edition

9780471323600

More Books

Students also viewed these Accounting questions

Question

3 points QUESTION 4 a. 6.36% b. 7.36% c. 12.19% d. 13.01% e. 14.37%

Answered: 1 week ago

Question

Know how to create a position description

Answered: 1 week ago