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Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP Income Statement For the Month Ended April 30, 2020
Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (10,000 units) $500,000 $50 Variable costs 300,000 30.00 Contribution margin 200,000 $20.00 Fixed expenses 140,000 Net income $60,000 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 sales by 10%. 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 Break-even point Margin of safety units (b1) Assuming changes to sales price and volume as described above. Break-even point Break-even point Margin of safety units
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