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Iris Manufacturing Inc. has provided you with the following CVP income statement: $1,100,000 $200 per unit Sales (5,500 units) Variable costs 726,000 132 per
Iris Manufacturing Inc. has provided you with the following CVP income statement: $1,100,000 $200 per unit Sales (5,500 units) Variable costs 726,000 132 per unit Contribution margin 374,000 $68 per unit Fixed costs 318,920 Operating income $55,080 Management is considering the following course of action to increase operating income: reduce the selling price by 20%, with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%. Calculate the break-even point in units and sales dollars with no change in sales. (Round units to O decimal places, eg. 5,275 and dollar amount to 2 decimal places, eg. 15.25) In units Break-even point In dollars
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