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Question 4 Iris Manufacturing Inc. has provided you with the following CVP income statement Sales (5,300 units) $1,060,000 $200 per unit Variable costs Contribution margin
Question 4 Iris Manufacturing Inc. has provided you with the following CVP income statement Sales (5,300 units) $1,060,000 $200 per unit Variable costs Contribution margin 371,000 $70 per unit Fixed costs Operating income 689,000 130 per unit 310,800 60,200 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 units to 0 decimal places,e.g.5,275 and dollar amount to 2 decimal places,e.g.15.25.) In units In dollars Break-even point LINK TO TEXT Calculate the break-even point In units and sales dollars with the proposed change in sales price. (Round units to 0 decimal places, e.g. 5,275 and dollar amount to 2 decimal places, e.g. 15.25.) In units In dollars Break-even point
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