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Business, 14.04.2020 17:29 bwjester0

Sales (8,000 units) $440,000 $55 Variable costs 242,000 30.25 Contribution margin 198,000 $24.75 Fixed expenses 195,426 Net income $2,574 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 10%. 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.

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Sales (8,000 units) $440,000 $55 Variable costs 242,000 30.25 Contribution margin 198,000 $24.75 Fix...
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