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

VICTORIA COMPANY

CVP Income Statement

For the Month Ended April 30, 2017

Total

Per Unit

Sales (9,700 units)$485,000$50Variable costs242,50025.00Contribution margin242,500$25.00Fixed expenses187,500Net income$55,000

Management is considering the following course of action to increase net income: Reduce the selling price by5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by10%.

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.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.)

(a)Assuming no changes to selling price or costs.

Break-even point

unitsBreak-even point$

Margin of safety$

(b1)Assuming changes to sales price and volume as described above.

Break-even point

unitsBreak-even point$

Margin of safety$