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If I could get an explanation of what I'm doing wrong and what the answer is that would be great, thanks! I was doing the
If I could get an explanation of what I'm doing wrong and what the answer is that would be great, thanks!
I was doing the break-even point unit x $20 from the contribution margin per unit
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 270,000 30.00 Contribution margin 180,000 $20.00 Fixed expenses 150,000 Net income $30,000 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 hxed 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 7500 units Break-even point $ 150000 Margin of safety $ 75000 (61) Assuming changes to sales price and volume as described above. Break-even point 8333 units Break-even point $ 518400 Margin of safety $ 118416Step by Step Solution
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