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Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP...

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Accounting

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Marigold Company reports the following operating results for the month of April. MARIGOLD COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (10,000 units) $500,000 $50 Variable costs 300,000 30.00 Contribution margin 200,000 $20.00 Fixed expenses 140,000 Net income $60,000 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 7000 units Break-even point 350000 A A Margin of safety $ 150000 (b1) Assuming changes to sales price and volume as described above. Break-even point 8000 units Break-even point $ $ Margin of safety

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