Victoria company reports the following operating results for the month of april.
victori...
Mathematics, 11.12.2019 01:31 blondie02
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) $450,000 $50
variable costs 270,000 30.00
contribution margin 180,000 $20.00
fixed expenses 150,000
net income $30,000
management is considering the following course of action to increase net income: reduce the 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 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 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 units
break-even point $
margin of safety $
(b1) assuming changes to sales price and volume as described above.
break-even point units
break-even point $
margin of safety $
Answers: 2
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