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Victoria Company reports the following operating results for the month of April

Accounting

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 $47 Sales (10,000 units) Variable costs Contribution margin Fixed expenses $470,000 220,900 249,100 22.09 $24.91 199,280 $49,820 Net income Management is considering the following course of action to increase net income: Reduce the selling price by 3%, 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 8000 units Break-even point 376000 $ Margin of safety 94000 $ (b1) Assuming changes to sales price and volume as described above. Break-even point units Break-even point Margin of safety $

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