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Your answer is incorrect. Try again Victoria Company reports the following operating results for the month of April VICTORIA COMPANY CVP Income Statement For the
Your answer is incorrect. Try again 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) Variable costs Contribution margin Fixed expenses Net income 450,000 225,000 225,000 200,025 $24,975 $50 25.00 $25.00 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 20%. 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 decimai 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 Break-even point units 40005 Margin of safety 409995 (b1) Assuming changes to sales price and volume as described above Break-even point 8001 units Break-even point 461841 Margin of safety
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