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Wildhorse Company reports the following operating results for the month of April. WILDHORSECOMPANY CVP Income Statement For the Month Ended April 30, 2025 Total
Wildhorse Company reports the following operating results for the month of April. WILDHORSECOMPANY CVP Income Statement For the Month Ended April 30, 2025 Total Per Unit Percent of Sales Sales (10,980 units) $549,000 $50 Variable costs 329,400 30 89 100 % 60 Contribution margin 219,600 $20 40 % Fixed expenses 183,000 Net income $36,600 Management is considering the following course of action to increase net income: Reduce the unit 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 10%. Using the contribution margin technique, compute the break-even point in sales units and sales 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 unit selling price or costs. Break-even point 9150 units Break-even point $ 305000 Margin of safety $ 244000 (b1) Assuming changes to unit selling price and volume as described above. Break-even point units Break-even point $ Margin of safety $
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