Using the contribution margin technique compute the

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Reference no: EM13581443

Queensland Company reports the following operating results for the month of April.

QUEENSLAND COMPANY CVP Income Statement For the Month Ended April 30, 2014
	Total	Per Unit
Sales (8,500 units)	$459,000	$54.00
Variable costs	243,270	28.62
Contribution margin	215,730	$25.38
Fixed expenses	157,356
Net income	$58,374

Management is considering the following course of action to increase net income: Reduce the selling price by 5%, 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.

Break-even point		units
Break-even point	$
Margin of safety	$

(b) Assuming changes to sales price and volume as described above.

Break-even point		units
Break-even point	$
Margin of safety	$

Reference no: EM13581443

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