Linden Company manufactures and sells a single product. Cost data for the product follow: VARIABLE COSTS PER UNIT Direct Materials Direct Labor Variable Factory Overhead Variable selling and administrative Total variable costs per unit $ 6.00 12.00 4.00 3.00 $ 25.00 FIXED COSTS PER MONTH Fixd Factory Overhead Fixed selling and administrative Total Fixed Costs per month $ 240,000 180.000 $ 420,000 The product sells for $40 per unit. During the month of May the company produced 30,000 units and sold 26,000 of those units. During the month of June, the company produced 30,000 units and sold 34,000 units (all units from June plus the 4,000 units left over from May). Compute the break-even point in units for May Compute the break-even point in sales dollars for May Would the break even point be the same for May and June? Compute the company's margin of safety in dollars for May Compute the company's margin of safety as a percentage (to two decimal places) for May The manager believes that due to good economic conditions, if the selling price is reduced by 10%, unit sales will increase by 30% in July (from June) Should the manager proceed with this decision? Complete the table to show calculations JULY (with JUNE proposed CHANGE changes) Unit sales 34,000 Selling Price per unit $ 40 Sales Total Variable costs Contribution Margin Total Fixed Costs Net Operating Income Should the manager proceed with the decision 2 Why? Using the proposed changes by the manager, compute the new break-even point in units Using the proposed chnages by the manager, compute the new break even point in sales dollars