Question
Oriole Company reports the following operating results for the month of April. ORIOLE COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total
Oriole Company reports the following operating results for the month of April. ORIOLE COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $25.00 Fixed expenses 175,050 Net income $49,950 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 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 0 decimal places, e.g. 2,510.) (a) Assuming no changes to selling price or costs. Break-even point Entry field with incorrect answer now contains modified data units Break-even point $ Entry field with incorrect answer now contains modified data Margin of safety $ Entry field with incorrect answer now contains modified data (b1) Assuming changes to sales price and volume as described above. Break-even point Entry field with incorrect answer now contains modified data units Break-even point $ Entry field with incorrect answer now contains modified data Margin of safety $ Entry field with incorrect answer now contains modified data
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