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Per Unit VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (9,000 units) $423,000 Variable costs 224,190 Contribution margin 198,810

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Per Unit VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (9,000 units) $423,000 Variable costs 224,190 Contribution margin 198,810 Faxed expenses 163,466 Net Income $35,344 $47 24.91 $22.09 Management is considering the following course of action to increase net income Reduce the selling price by 10%, 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 dollarscround intermediate calitations to a decimal . .) (a) Assuming no changes to selling price or costs Break-even point units Break-even point 5 Margin of safety $ (61) Assuming changes to sales price and volume as described above Break-even point units Break-even point $ Margin of safety

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