FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ldoghis
Home -M
Do It! Review 6-1 a, b1
Victoria Company reports the following operating results for the month of April.
CALCULATOR
PRINTER VE
VICTORIA COMPANY
CVP Income Statement
For the Month Ended April 30, 2020
Total
Per Unit
Sales (9,000 units)
$450,000
$50
Variable costs
225,000
25.00
Contribution margin
225,000
$25.00
Fixed expenses
175,050
Net income
$49,950
Management is considering the following course of action to increase net income: Reduce
Management is confident that this change will increase unit sales by 20%.
selling price by 5%, with nơ changes to unit variable costs or fixed cou
Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to a
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.
units
Break-even point
1118 PM
ENG
/14/2021
Break-even point
$
中
2$
Margin of safety
earch
Insert
1O
expand button
Transcribed Image Text:ldoghis Home -M Do It! Review 6-1 a, b1 Victoria Company reports the following operating results for the month of April. CALCULATOR PRINTER VE VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $25.00 Fixed expenses 175,050 Net income $49,950 Management is considering the following course of action to increase net income: Reduce Management is confident that this change will increase unit sales by 20%. selling price by 5%, with nơ changes to unit variable costs or fixed cou Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to a 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. units Break-even point 1118 PM ENG /14/2021 Break-even point $ 中 2$ Margin of safety earch Insert 1O
Hòme-MyADU
ring the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or foed co
is confident that this change will increase unit sales by 20%.
CALCULATOR
PRINTER VERSION
Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to
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
$4
Margin of safety
%$4
(b1) Assuming changes to sales price and volume as described above.
units
Break-even point
Break-even point
$4
Margin of safety
$1
Click if you would like to Show Work for this question: Open Show Work
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Transcribed Image Text:Hòme-MyADU ring the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or foed co is confident that this change will increase unit sales by 20%. CALCULATOR PRINTER VERSION Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 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 $4 Margin of safety %$4 (b1) Assuming changes to sales price and volume as described above. units Break-even point Break-even point $4 Margin of safety $1 Click if you would like to Show Work for this question: Open Show Work
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