Sandhill Company reports the following operating results for the month of April.

SANDHILL COMPANY CVP Income Statement For the Month Ended April 30, 2022
		Total		Per Unit
Sales (8,820 units)		$476,280		$54.00
Variable costs		264,600		30.00
Contribution margin		211,680		$24.00
Fixed costs		147,000
Operating income		$64,680

Management is considering the following course of action to increase operating 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 30%. Using the contribution margin technique, calculate the break-even point in units and dollars and margin of safety in dollars.

(a)

Partially correct answer icon

Your answer is partially correct.

Assume no changes to selling price or costs. (Round contribution margin ratio and final answers to 0 decimal places, e.g. 125.)

Break-even point		enter the break-even point in units	units
Break-even point		$enter the break-even point in dollars
Margin of safety		$enter the margin of safety in dollars

Attempts: 1 of 1 used

(b)

Assume changes to sales price and volume as described above. (Round contribution margin ratio to 2 decimal places, e.g. 15.25 or 15.25% and final answers to 0 decimal places, e.g. 125.)

Break-even point		enter the break-even point in units	units
Break-even point		$enter the break-even point in dollars
Margin of safety		$enter the margin of safety in dollars