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pharoach manufacturing ltd has provided you with the following cvp income statement Sales Sales (5,000 units) Variable costs Contribution margin Fixed costs Operating income $1,000,000

pharoach manufacturing ltd has provided you with the following cvp income statement Sales

Sales (5,000 units) Variable costs Contribution margin Fixed costs Operating income $1,000,000 670,000 330,000 274,560 $55,440 $200 134 per unit per unit $66 perunit

Management is considering the following course of action to increase operating income: reduce the selling price by 20%, with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%.

Calculate the break-even point in units and sales dollars with no change in sales. (Round contribution margin ratio to 5 decimal places, eg. 15.22456%. Round units to 0 decimal places, e.g. 5,275 and dollar amount to 2 decimal places, e.g. 15.25.)

breakeven points in units and $dollar..?

Calculate the break-even point in units and sales dollars with no change in sales. (Round contribution margin ratio to 5 decimal places, eg. 15.22456%. Round units to 0 decimal places, e.g. 5,275 and dollar amount to 2 decimal places, e.g. 15.25.)

breakevenpoints in unit and $dollar..?

should management go forward with reduction in sales price yes or no ?

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