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VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $ 450,000 $50 Variable costs 225,000 25.00

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VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $ 450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $ 25.00 Fixed expenses 174,900 Net income $ 50,100 Management is considering the following course of action to increase net income: Reduce the selling price by 6%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%, Using the contribution margin technique, compute the break-even point in units and dollars and marrin of safety in dollars: (Round (61) Assuming changes to sales price and volume as described above. Break-even point units Break-even point $ Margin of safety $

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