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Sunland Manufacturing Ltd. has provided you with the following CVP Income statement: $1.020,000 612.000 Sales (5,100 units) Variable costs Contribution margin Fored costs Operating Income
Sunland Manufacturing Ltd. has provided you with the following CVP Income statement: $1.020,000 612.000 Sales (5,100 units) Variable costs Contribution margin Fored costs Operating Income $200 per unit 120 per unit $80 per unit 408,000 348,000 $60,000 Management is considering the following course of action to increase operating income reduce the selling price by 20%, with no changes to unlt variable costs or fond 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 decimal places, s 15.22456. Round units to decimal places. 5.275 and dollar amount to 2 decimal places, s. 15.25 In units In dollars Break-even point Calculate the break-even point in units and sales dollars with no change in sales. (Round contribution margin ratio to 5 decimal ploces, es 15.22456%. Round units to decimal ploces, 08.5.275 and doliar amount to decimal places, es 15.25) In units In dollars Break even point Question Part Score --/2 Calculate the break-even point in units and sales dollars with the proposed change in sales prke. Round units to decimal places es 5.275 and dollar amount to 2 decimal places, s. 15.25) In units In dollars Break even point ** RESET In units In dollars Break-even point Question Part Score Should management go forward with the reduction in sales price? Question Part Score --/3 Attempts: 0 of 1 used on
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