Walmart has provided the following CVP income statement:

Sales (5,100 units)		$1,020,000		$200	per unit
Variable costs		632,400		124	per unit
Contribution margin		387,600		$76	per unit
Fixed costs		321,480
Operating income		$66,120

Management is considering the following course of action to increase operating income: reduce the selling price by 20%, with no changes to unit variable costs or fixed 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. also round contribution margin ratio to 5 decimal places and round units to 0 decimal places, and dollar amount to 2 decimal places.

		In units		In dollars
Break-even point		enter a number of units rounded to 0 decimal places		$enter a dollar amount rounded to 2 decimal places

Calculate the break-even point in units and sales dollars with the proposed change in sales price. Round units to 0 decimal places, and dollar amount to 2 decimal places

		In units		In dollars
Break-even point		enter a number of units rounded to 0 decimal places		$enter a dollar amount rounded to 2 decimal places

Should management go forward with the reduction in sales price? Yes or No ________