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Sunland Company reports the following operating results for the month of April. Management is considering the following course of action to increase operating income: Reduce
Sunland Company reports the following operating results for the month of April. 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. Assume no changes to selling price or costs. (Round contribution margin ratio and final answers to 0 decimal places, eg. 125.) Break-even point units Break-even point $ Margin of safety $ Assume changes to sales price and volume as described above. (Round contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to 0 decimal places, e.g. 125.) Break-even point units Break-even point $ Margin of safety \$ $
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