- Victoria Company Reports The Following Operating Results For The Month Of April 1 (39.27 KiB) Viewed 10 times
Victoria Company reports the following operating results for the month of April.
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Victoria Company reports the following operating results for the month of April.
Victoria Company reports the following operating results for themonth of April.
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 $400,000 Sales (8,000 units) Variable costs Contribution margin Fixed expenses Net income Break-even point Break-even point Margin of safety $ Management is considering the following course of action to increase net income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Break-even point 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 LA Margin of safety 200,000 200,000 $ 182,600 $17,400 LA Per Unit $50 25.00 $25.00 (b1) Assuming changes to sales price and volume as described above. 7304 365200 34800 units units
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 $400,000 Sales (8,000 units) Variable costs Contribution margin Fixed expenses Net income Break-even point Break-even point Margin of safety $ Management is considering the following course of action to increase net income: Reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Break-even point 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 LA Margin of safety 200,000 200,000 $ 182,600 $17,400 LA Per Unit $50 25.00 $25.00 (b1) Assuming changes to sales price and volume as described above. 7304 365200 34800 units units