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Victoria Company reports the following operating results for the month of April VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total

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Victoria Company reports the following operating results for the month of April 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 184.950 Net income $40.050 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.3.0.2522 and final answer to O decimal places. c.g. 2,510.) (a) Assuming no changes to selling price or costs. Break-even point 7,398 units Break even point $ 369.900 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places eg. 0.2522 and final answer to decimal places, 4.8.2,510.) (a) Assuming no changes to selling price or costs, 7.398 units Break-even point Break-even point Margin of safety $ 369.900 $ 80,100 (11) Assuming changes to sales price and volume as described above. Break-even point units Break-even point $ Margin of safety $

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