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Victoria Company reports the following operating results for the m of April. Management is considering the following course of action to increase net income: Reduce
Victoria Company reports the following operating results for the m of April. Management is considering the following course of action to increase net income: Reduce the selling price by 4%, 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 sales units and sales dollars and margin of safety in dollars: a. Assuming no changes to selling price or costs, and b. Assuming changes to sales price and volume as described above. Comment on your findings. Compute sales mix, weighted-average contribution margin, and break-even point
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