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Wildhorse Company reports the following operating results for the month of April. Management is considering the following course of action to increase operating income: Reduce
Wildhorse Company reports the following operating results for the month of April.
Wildhorse Company reports the following operating results for the month of April. Management is considering the following course of action to increase operating income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 30%. Using the contribution margin technique, calculate the break-even point in units and dollars and margin of safety in dollars. Assume no changes to selling price or costs. (Round contribution margin ratio and final answers to 0 decimal places, eg. 125.) eTextbook and Media 6. Your answer is incorrect. Assume changes to sales price and volume as described above. (Round contribution margin ratio to 2 decimal places, es. 15.25 or 15.25\% and final answers to 0 decimal places, eg. 125.) Management is considering the following course of action to increase operating income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 30%.
Using the contribution margin technique, calculate the break-even point in units and dollars and margin of safety in dollars.
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