IVANHOECOMPANY

CVP Income Statement For the Month Ended April $30,2025$

$\backslash$table$[[,$Total,Per Unit,Percent of Sales$],[$Sales $(3,870$ units$),$$$387,000,$$$100,100],[$Variable costs,$232,200,60,60],[$Contribution margin,$154,800,$$$40,40],[$Fixed expenses,$129,000,,],[$Net income,$$25,800,,.]]$

Management is considering the following course of action to increase net income: Reduce the unit selling price by $4\%,$ 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 sales units and sales dollars and margin of safety in dollars: $($Round intermediate calculations to $4$ decimal places e$.$g$.0\mathrm{.}2522$ and final answer to $0$ decimal places, e$.$g$.2,510.)$

$($a$)$ Assuming no changes to unit selling price or costs.

Break$-$even point units

Break$-$even point $

Margin of safety $

$($b$1)$ Assuming changes to unit selling price and volume as described above.

Solve for B$1$