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

SUNLAND COMPANY

CVP Income Statement

For the Month Ended April $30,2022$

Total Per Unit

Sales $(10,440$ units$)$ $$542,880$ $$52\mathrm{.}00$

Variable costs $292,32028\mathrm{.}00$

Contribution margin $250,560$ $$24\mathrm{.}00$

Fixed costs $174,000$

Operating income $$76,560$

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$)$

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 units

Break$-$even point $

Margin of safety $

$($b$)$

Assume changes to sales price and volume as described above. $($Round contribution margin ratio to $2$ decimal places, e$.$g$.15\mathrm{.}25$ or $15\mathrm{.}25\%$ and final answersto $0$ decimal places, e$.$g$.125.)$

Break$-$even point units

Break$-$even point $

Margin of safety $